BBA Aviation selling ASIG to Menzies in $202 million deal
BBA Aviation firm said Menzies is funding the acquisition through raising additional debt and equity and, in addition to customary approvals, the transaction will require the approval of its shareholders.
As a result of that process, the disposal is expected to close around the end of 2016.
BBA described ASIG as "the world's leading independent refueller", employing approximately 8,000 people and providing ground, fuel and airport facility services to airlines, airports, oil companies and industry partners in the commercial aviation sector.
"It safely delivers flexible and comprehensive service solutions including refuelling, fuel farm management, ground handling, aircraft technical support services, facilities equipment maintenance and de-icing, with considerable technical expertise at more than 80 airports in North America, Central America, Europe and Asia," BBA's board said in the announcement.
ASIG's EBITDA for the twelve months to December 31, 2015 was $31.9m, and its underlying and statutory profit before tax was $20.3m and $17.9m respectively, while the value of the gross assets at 30 June 2016 was $255.6m.
The transaction's gross consideration of $202m is expected to deliver approximately $160m of net proceeds after tax, professional transaction fees, and other costs, which BBA will use to reduce group borrowings. ■