BBA Aviation plc, the focused Business and General Aviation (“B&GA”) value added service provider, announces the sale of six FBOs, as agreed with the U.S. Department of Justice under the terms of the regulatory approval for the acquisition of Landmark Aviation (“Landmark”), for an aggregate cash consideration of $190 million to affiliates of KSL Capital Partners, LLC (“the transaction”). In connection with the transaction, KSL has partnered with Jeffrey Ross, the former president and CEO of Ross Aviation, who will manage the Divestiture Assets following the closing of the transaction. The transaction is subject to customary approvals, including airport consents and approval by the U.S. Department of Justice, and completion is expected in due course.
As previously announced on 3 February, under the terms of the regulatory approval in connection with the acquisition of Landmark Aviation, the Company was required to sell six legacy Landmark FBOs at: Westchester County Airport, New York; Washington Dulles International Airport, Virginia; Scottsdale Airport, Arizona; Ted Stevens Anchorage International Airport, Alaska; Jacqueline Cochran Regional Airport, California; and part of the Landmark facilities at Fresno Yosemite International Airport. These FBOs together contributed $16.1 million of EBITDA in 2014. Proceeds of the transaction will be used to repay existing debt facilities, including in its entirety the $150 million short term debt facility raised as part of the financing package for the transaction.
Commenting on today's announcement, Simon Pryce, Chief Executive of BBA Aviation, said:
“We are pleased to announce this successful disposal, which follows the transformational acquisition of Landmark Aviation. Since completing the acquisition in February, we have made good progress with the integration which is proceeding to plan. We look forward to updating the market in due course as we realise the full potential of the expanded Group.”