Wheels Up set to acquire Air Partner
Wheels Up Experience has reached an agreement to buy Gatwick-based aviation services group Air Partner.
The announcement, made to the London Stock Exchange (LSE) this morning, confirmed that Wheels Up will acquire the entire issued and to be issued ordinary share capital of Air Partner for £125 per share equivalent to an enterprise value close to £79.7m.
The acquisition is expected to be completed at the end of quarter one or early in the second quarter of this year subject to shareholder and regulatory clearances in the U.K. and Italy.
Founded in 1961, Air Partner is based at Gatwick Airport, has 450 employees and operates in 18 locations and four continents, including the U.S.
It provides group charter, freight, specialist services, safety, security, emergency planning and incident response alongside managed services.
READ MORE: How CEO Mark Briffa took Air Partner to new heights
Wheels Up provides "on demand" private aviation in the United States and one of the largest private aviation companies in the world.
Mark Briffa, CEO of Air Partner, said the deal would result in an improved service for customers.
He said: "This proposed acquisition has a compelling strategic rationale, bringing together two businesses with complementary offerings and values for the benefit of their customers. I am extremely proud of Air Partner; we have built a fantastic team and a highly attractive business and Wheels Up's offer is a clear acknowledgment of this.
"The Air Partner Board believes that a combination with Wheels Up would give our customers, colleagues and stakeholders the additional resources of one of the largest private aviation companies in the world, enabling us to significantly enhance our technology, customer offer, and international aircraft supply. Air Partner has always placed the customer at the heart of what we do - a value that is equally shared by Wheels Up - and I am confident this will continue to be the case. It's clear to us that Wheels Up has a full appreciation of our expert capabilities and highly skilled teams and, with their backing and support, I am confident that Air Partner would have an extremely bright future."
A statement released to the LSE this morning said that the acquisition would allow Wheels Up to become a "global leader in private aviation" and builds on its recent investments in brand, operations, service, and technology.
Kenny Dichter, CEO of Wheels Up, said the acquisition would increase the capabilities of the New York-based firm.
He said: "Today's announcement marks an important new chapter for Wheels Up as we systematically build the leading global, private aviation company that creates value for our customers and shareholders. This acquisition will allow us to offer existing and future customers even more compelling and seamless options for private travel, expand the reach of our marketplace in key markets around the world, and add important operational capabilities to our network.
"Air Partner has tremendous heritage, leadership expertise and unique capabilities that will allow us to accelerate our global strategy and credibly expand our offerings in a meaningful way. We look forward to sharing more details on the transaction and our go-to-market plans after the deal formally closes."
Air Partner reported £44.9 million in gross profit for the year ending January 2021.
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