BBA set to buy Landmark

Signature Flight Support FBOs

FBOs / EUROPE | 23/09/2015

UK-based BBA Aviation has agreed to terms for a $2.065 billion acquisition of Landmark Aviation from The Carlyle Group, marking the continued consolidation of the FBO business.

A buyout fund associated with the Carlyle Group purchased Landmark Aviation in 2012 and has steadily grown the number of FBOs within the network. Landmark had 51 locations throughout the United States, Canada and France when it was purchased and now has 68.  It has locations at airports in New York (White Plains), New Jersey (Teterboro), Los Angeles, Miami, San Diego, Washington DC (Dulles), Paris (Le Bourget) and London (Luton).

The Carlyle Group had been looking to sell Landmark for several months, according to media reports. The company had explored taking Landmark public as a way to pull money out of the operation but decided a sale was a better option, according to media reports.

The Carlyle Group had previously sold Landmark to state-owned Dubai Aerospace in 2007, which then sold it a private equity firms GTCR LLC and Platform Partners.

Also read: Landmark Aviation rebrands FBO

The acquisition represents a major expansion of Signature Flight Support, the FBO operation for BBA Aviation, and the world’s largest FBO network. It will be funded through a stock offering and debt and is subject to Department of Justice review before anything can be finalized.

“This is a transformational step in the continued execution of BBA Aviation’s strategy that is both strategically and financially compelling,” BBA Aviation Chief Executive Simon Pryce says in a released statement. “It represents a unique opportunity to materially expand our global Signature FBO business and deepen our exposure to the attractive B&GA market with its structural growth drivers.”

Signature has an exiting network of 133 wholly owned and affiliate global locations. Landmark’s aircraft maintenance locations will supplement Signature’s existing MRO operations. The acquisition would enable customers to benefit from an extension of Signature’s services across a much larger network of locations.

“We are delighted that BBA Aviation has agreed to this proposed acquisition of Landmark,” Signature COO Maria Sastre says in the released statement. “This is a strategic fit for the Signature network. It will significantly expand our reach within North America as well as globally. It will also enhance Signature’s customer value proposition and materially increase the relevance of our network for our customers.”