USAVIATION-SERVICE company Atlantic Aviation has agreed to be acquired by the Legg Mason investment fund in a move designed to provide the backing for ambitious expansion plans.
The company, which employs about 500 people at five US fixed-base operations (FBOs) and a business-aircraft maintenance and modification base at its Wilmington, Delaware, headquarters, will continue to operate as Atlantic Aviation. Founded in 1927, it is one of the leading "heavy-metal" business-jet maintenance companies.
Chief executive Ben Waide says that the company went looking for investors. "We looked at the industry consolidation and decided we had to grow or get out of the business. If we wanted to grow, we could become part of something larger or secure the financing to get larger ourselves," he says, adding that the "value of the name" persuaded the company to look for backers to go it alone.
Sales reached $73 million in 1996, but Waide is expecting "double-digit" growth this year in all three of the company's business sectors: FBOs, maintenance, and fleet management. He plans to improve Atlantic Aviation's existing bases and acquire additional USFBOs. The company is also looking at Latin America, having recently set up a fuelling operation at Valencia, Venezuela, in a joint venture with Texaco.
Legg Mason Merchant Banking manages a private fund with long-term investment goals, says Waide, and Atlantic Aviation is the firm's first foray into aviation.
US helicopter-service company Austin Jet has been sold to a group of US investors by its owner, UK-based Rene Charvillat. The $12 million deal will allow the Austin, Texas-based company to expand its maintenance, avionics installation and completion businesses.
Source: Flight International
