Deals
Air Partner plc Acquires Cabot Aviation Services Limited
Air Partner, a leading provider of private aviation services to industry, commerce, governments and private individuals worldwide, is pleased to announce the acquisition of Cabot Aviation, a leading global Aircraft Remarketing broker for a total consideration of up to £1.2 million.
It is expected that the acquisition will be earnings enhancing in the year to 31 January 2016.
Cabot Aviation was founded in 1998 by Malcolm Holt and Tony Whitty and has grown to become one of the leading specialist Aircraft Remarketing brokers in the world, with a broad section of major airlines and global financial clients. Headquartered in Tunbridge Wells, United Kingdom, Cabot Aviation has a sales presence in North America, Latin America, Russia & CIS, and Asia Pacific serving its global client base.
Cabot Aviation's main business is acting as agent and broker to airlines (flag carriers and regional) and other aircraft owners, such as banks, operating lessors, manufacturers, insolvency practitioners and high net worth Individuals, to dispose of their surplus aircraft, either by arranging a sale or lease of the aircraft. Cabot Aviation also advises clients on the acquisition of aircraft and their fleet management process.
Air Partner's existing Aircraft Remarketing operations are predominantly in the short-term wet lease market. The acquisition of Cabot Aviation adds significant aircraft sales and dry lease expertise and knowledge; channels where Air Partner is currently experiencing demand from its existing client base.
The vendors of Cabot Aviation, Malcolm Holt (Chairman) and Tony Whitty (Chief Executive), will lead the new Aircraft Remarketing subsidiary, which will continue to trade as Cabot Aviation, and will be responsible for all Aircraft Remarketing globally within the Group. The enlarged Cabot Aviation, powered by Air Partner, will be able to leverage the Air Partner global office infrastructure and supplier network to deliver even greater service breadth and depth to clients.
Cabot Aviation results will be included within Air Partner's Commercial Jets division for the foreseeable future.
In its filed accounts for the year ended 31st March 2014, Cabot Aviation achieved profit before taxation of £274,000 on a turnover of £706,000. It had gross assets of £177,000 and net assets of £1,000. In the year ended 31st March 2015, Cabot Aviation achieved unaudited profit before taxation of £383,000.
The consideration of up to £1.2 million is to be satisfied by the payment of £600,000 paid in cash on completion and the issue of up to £600,000 in new ordinary shares in Air Partner plc deferred over the next 5 years.
Mark Briffa, Chief Executive of Air Partner, said: "I am delighted to welcome the Cabot Aviation team to Air Partner. Cabot Aviation has built a fantastic reputation in the industry for delivering the very best advice and services to its global clients. It is expected that the acquisition will be immediately earnings enhancing, significantly increasing our Aircraft Remarketing operations and bringing additional benefits to all of our clients."
Malcolm Holt, Chairman of Cabot Aviation, said: "Tony and I founded Cabot Aviation in 1998 and have enjoyed growing it into the successful international business it is today. We are extremely excited to be joining Air Partner, a group which shares our commitment to aviation expertise, international excellence and industry leading client service. We are now looking forward to building on our successes within the enlarged Air Partner group."
Tony Whitty, CEO of Cabot Aviation, said: "While we have built a significant business over the last 17 years and are grateful for the support we have received from clients, we are now excited about the next leg of our journey. Joining the Air Partner group will enable us to enhance the services we offer our existing clients, while providing Air Partner's client base with deeper remarketing capabilities and additional aviation services. We very much look forward to continuing to partner with and support our existing and new clients."
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