On Monday, Macquarie Infrastructure Corporation (MIC), one of the largest private infrastructure investors in the world, announced that it is selling its private planes business, Atlantic Aviation to private equity peer KKR for $4.475 billion in cash and debt.
Headquartered in Plano, Texas, Atlantic Aviation operates one of the largest networks of fixed base operations (FBOs) in the U.S., providing private (non-commercial) aircraft owners and operators with fueling, de-icing, aircraft parking, hangar rental, catering, and other services. Macquarie has owned Atlantic Aviation since 2006.
KKR is making the investment primarily through its Global Infrastructure Investors and Core Investments strategies.
The purchase price implies a multiple of 16.2 times Atlantic Aviation’s 2019 EBITDA. After the sale, which is expected to close in the fourth quarter of this year, MIC expects to distribute $3.298 billion to unitholders.
“We are proud of the robust growth Atlantic Aviation has achieved under our ownership which resulted in strong interest from prospective buyers during the sale process,” said Christopher Frost, chief executive officer of MIC. “We are pleased with the outcome of the sale process and the unlocking of additional value for MIC shareholders. In addition to the timely closing of a sale of Atlantic Aviation our focus remains on successfully concluding the sale process for our MIC Hawaii business.”
“Atlantic Aviation has an outstanding reputation as a leading operator of critical aviation infrastructure across the U.S.,” said KKR Partner Dash Lane. “With our focus on providing long-term capital to support the growth of high quality and resilient businesses, we are excited to invest alongside Atlantic’s experienced team and strong existing platform which we believe is well positioned to capitalize on multiple avenues of future growth.”
Earlier this spring, Atlantic Aviation announced the elimination of fossil-based diesel and transition to renewable diesel at its Los Angeles International Airport FBO, and the availability of renewable diesel at its Aspen-Pitkin County FBO.
