BY Richard Summerfield
Global Infrastructure Partners has agreed to acquire private jet servicing company Signature Aviation in a $4.63bn deal. Global Infrastructure Partners, which co-owns London’s Gatwick airport, has overcome private equity giants Blackstone and Carlyle to acquire Signature Aviation.
Under the terms of the deal, Signature Aviation’s investors will receive $5.50 per share held, according to a statement. The price is above the $5.17 a share approach made last week by Blackstone Group Inc and Bill Gates, Signature Aviation’s biggest shareholder. Mr Gates, who owns 19 percent of the company through his vehicle Cascade Investment, joined Blackstone in its bid to buy the business.
Blackstone or Carlyle (which was exploring a $4.07bn bid for Signature) can still table a new bid for the company.
Signature Aviation offers services such as fuelling and maintenance at airports round the world. Private flying services, such as those offered by Signature, are one of the few travel sectors to have benefited from the coronavirus pandemic as they offer opportunities for travel while minimising potentially risky contact with other passengers.
“Signature, like many businesses in the aviation sector, needs to address the challenges resulting from Covid, whilst market conditions and earnings are likely to remain subdued for some time,” said Adebayo Ogunlesi, chairman and managing partner of Global Infrastructure Partners. “As an experienced, long term infrastructure investor with a strong operational focus, we believe that we are the ideal partner for Signature going forward.”
“Over recent years, the management of Signature has created a leading global private aviation support services business, whilst streamlining the group to maximise value for shareholders,” said Sir Nigel Rudd, chairman of Signature. “We believe that the offer from GIP represents an attractive and certain value in cash today for Signature Shareholders, reflecting the high quality of the business and its network, its people and its future prospects.”
Global Infrastructure Partners had made a lower bid for the company in December, which was rebuffed by Signature.
News: Gatwick Airport co-owner outbids Blackstone to buy Signature Aviation