Macquarie Infrastructure Corporation (MIC) and KKR, a global investment firm, have signed a definitive agreement for MIC to sell its Atlantic Aviation business to KKR for US$4.475 billion in cash, assumed debt and reorganization obligations. Atlantic Aviation operates one of the largest networks of fixed-base operations (FBOs) in the U.S. providing a full suite of critical services to the private aviation sector.
The purchase price implies a multiple of Atlantic Aviation’s 2019 Earnings Before Interest Taxes and Depreciation (EBITDA) of 16.2 times.
MIC expects to receive US$3.525 billion at closing following the reorganization of MIC into a limited liability company, Macquarie Infrastructure Holdings (MIH). The reorganization was approved by MIC shareholders on May 6, 2021 and is expected be completed shortly before the closing of the Atlantic Aviation sale.
The Atlantic Aviation sale is expected to result in cash proceeds of approximately US$3.298 billion being available for distribution to unitholders after a disposition payment by MIH to MIC’s external manager of approximately US$227 million. The disposition payment was calculated in accordance with the disposition agreement entered into by and between MIC and the company’s external manager on October 30, 2019. The MIH board of directors is expected to authorize a cash distribution of approximately US$37.35 per unit following closing of the transaction.
The sale of Atlantic Aviation is expected to close in the fourth quarter of 2021, subject to customary regulatory approvals and approval from MIC shareholders. MIC expects to seek approval of the Atlantic Aviation sale at a special meeting of shareholders to be conducted as soon as practical following clearance of the related proxy statement by the Securities and Exchange Commission.
KKR is making its investment in Atlantic Aviation primarily through its global infrastructure investors and core investments strategies.
