Air Canada parent ACE Aviation Holdings (ACE) has completed the sale of a 70% stake in its Montreal-based maintenance unit ACTS to private equity firms Sageview Capital and Kohlberg Kravis Roberts.
The company received net cash proceeds of C$723 million ($738 million) on closing. Within six months, it may receive up to an additional C$40 million from funds held in escrow, conditional upon the completion of certain supplier contracts.
ACTS, together with the El Salvador-based Aeroman subsidiary it acquired in February, employs 4,800 employees. In relation to the deal to acquire Aeroman from Grupo Taca, the latter held the right to acquire up to 5% in ACTS from ACE.
ACE says it retains a 23% interest in the new ACTS with a value of C$83 million, following the redemption of the exchangeable share issued to a party related to Grupo Taca and the establishment of an initial ACTS long term incentive plan.
Source: Air Transport Intelligence news
Source: FlightGlobal.com
