BBA Aviation agrees to acquire Maguire Aviation at Van Nuys Airport, LA
BBA Aviation plc, the leading global aviation support and aftermarket services provider announces that its Signature Flight Support business ("Signature") has agreed to acquire the assets of Maguire Aviation Group, LLC at Van Nuys Airport, Los Angeles, California for a cash consideration of $69m on a cash and debt free basis. The acquisition is subject to customary approvals and is expected to complete by the end of 2013.
The acquisition of the site's largest operator strengthens Signature Flight Support's existing position at Van Nuys Airport extending its footprint threefold to 1,170,000 sq ft of hangar space, ramp, passenger lounges and office space. Following the acquisition, Signature will also own and operate the dedicated NetJets facility on the field, the second such facility in its network.
Van Nuys Airport serves the greater Los Angeles metropolitan area and currently ranks as the sixth busiest business and general aviation airport in the US, handling over 250,000 aircraft movements per annum. Its proximity to downtown Los Angeles makes it a convenient and attractive gateway for both business and leisure travellers, including the Hollywood entertainment industry. The newly acquired assets will be branded Signature Flight Support and will operate as part of the Signature Flight Support global network.
The acquisition is expected to be earnings enhancing in the first full year of ownership and meet BBA Aviation's 12% pre-tax return on invested capital target by year three.
Commenting on the acquisition, Simon Pryce, BBA Aviation Group Chief Executive said:
"The acquisition of Maguire Aviation is a continuation of Signature's value disciplined growth strategy. It significantly extends Signature's position on one of the largest business and general aviation airports in the world and a key gateway location in the US. In addition, it allows Signature to extend its industry leading FBO services to Maguire's existing customers and to introduce them to the benefits of the Signature global network."