This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
Macquarie Infrastructure Company (the “Company” or “MIC”) (NYSE: MIC) announced that its Atlantic Aviation business has entered into an agreement to acquire certain of the assets of Galaxy Aviation, including substantially all of the assets of five fixed base operations (FBOs) and one new hangar that is currently under construction at one of the five airports at which the FBOs operate, for $195.0 million . The Company said that it expects the acquisition to be immediately accretive to proportionately combined free cash flow.
MIC expects to fund the acquisition using a combination of cash on hand, a draw on a credit facility of its Atlantic Aviation subsidiary and proceeds from an equity offering launched this morning. The transaction is expected to close in the first quarter of 2014, subject to the receipt of consents from the relevant airport authorities and satisfaction of other closing conditions typically associated with a transaction of this size and type.
“The acquisition of the Galaxy Aviation FBOs adds high-quality facilities in the strategically important Florida market,” said James Hooke, Chief Executive Officer of Macquarie Infrastructure Company. “In addition to creating an immediate, substantial presence for Atlantic Aviation in the Florida marketplace, it is expected to provide MIC with an increase in proportionately combined free cash flow.”
The acquired FBOs are expected to generate annualized adjusted EBITDA in 2014 of approximately $17.83 million including earnings from a hangar currently under construction at West Palm Beach airport. The 75,000 square foot hangar is forecast to be in service late in the first quarter of 2014 and will immediately be occupied by customers who have already signed contracts for the space.
Four of the five facilities being acquired are located in Florida. Florida collectively accounted for approximately 11.8% of general aviation jet traffic at the busiest 250 general aviation airports in the US in 2012, according to data published by the Federal Aviation Administration. The fifth facility is located near Steamboat Springs, Colorado and complements Atlantic Aviation’s existing operations at Aspen and Rifle, Colorado.