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Macquarie Infrastructure Company (NYSE:MIC) announced that its Atlantic Aviation business has reached financial close on an acquisition of a fixed base operation (FBO) in Kansas City, Mo. The acquisition of the Hangar 10 aviation services facility increases the size of the Atlantic Aviation network to 63 fixed base operations throughout the US.
Atlantic Aviation acquired the Hangar 10 facility for a multiple of EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately ten times.
“We are pleased that Atlantic Aviation has been successful in its acquisition of the Hangar 10 fixed base operation,” said James Hooke, Chief Executive Officer of MIC. “Hangar 10 is an outstanding facility and one that is likely to contribute to the continued strong financial performance of Atlantic Aviation.”
Year to date through the end of September, Atlantic Aviation had generated an increase in EBITDA of 9.9%. The growth reflects an increase in the number of general aviation flight movements in the US broadly and an increase in Atlantic Aviation’s market share in certain regions.
Atlantic Aviation also reported that it successfully negotiated lease extensions of up to 40 years at its facilities at the Houston-IAH and Houston-Hobby airports. The combination of the acquired lease and these and other lease extensions increases the average remaining lease life of the Atlantic Aviation portfolio by one and a half years to just under 20 years at December 31, 2013.
“The improvement in performance and growth momentum at Atlantic Aviation in evidence through the September quarter of this year has continued in the fourth quarter.” Hooke added. “Atlantic Aviation is poised to generate strong financial results for the full year, capped off with a very attractive acquisition and significant lease extensions. We’re very pleased with the efforts of the management team at Atlantic Aviation and the business’ contribution to MIC.”