Macquarie Confirms Allied FBO Purchase
Australia’s Macquarie Infrastructure confirmed that it is buying Allied Capital’s chain of 24 FBOs, which includes Mercury Air Centers, Corporate Wings, FirstAir and IX Jet Center. Price of the purchase is $456.2 million, and the deal should close in the third quarter, “subject to consent (or letters of estoppel) being received from relevant airport authorities,” according to a Macquarie statement. Macquarie is also purchasing the two Supermarine FBOs from the American Airports Corporation. All of the Allied Capital FBOs will be rebranded under Macquarie’s Atlantic Aviation FBO chain. Macquarie bought 10 Atlantic Aviation FBOs in 2004 for $238 million. Allied Capital bought Mercury Air Centers in 2004, from Mercury Air Group. There are no overlapping FBOs in the Atlantic/Mercury Air Centers network, according to Macquarie, which with 68 FBOs will be the largest FBO chain in the U.S. According to Atlantic Aviation, the purchase will not include Mercury’s Fuel On Demand pre-paid ramp fee program. Macquarie expects the purchase to add $35 million in EBITDA (earnings before interest, taxes, depreciation and amortization) during its first full year of ownership [this sentence has been corrected by AIN after it first appeared].