Macquarie Infrastructure Company (NYSE:MIC) announced that its Atlantic Aviation business has reached financial close on previously announced acquisitions of six additional fixed base operations (FBO) including five in Florida and one in Colorado. The acquisitions were completed in two transactions concluded on Wednesday, April 30, 2014.
Atlantic Aviation paid a total of $230.0 million for the acquired facilities. MIC has indicated that the acquisitions are expected to generate an incremental $21.3 million of annualized EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
“The acquisitions of the Galaxy and Boca Aviation operations represent a significant milestone for Atlantic Aviation,” said James Hooke, Chief Executive Officer of MIC. “With this one event Atlantic moves from having no presence in the Florida market — one of the largest general aviation markets in the country — to being the second largest FBO operator there.”
“Fixed base operations are public facing businesses and we’re eager to work together with the airport authorities, customers and other stakeholders to show that Atlantic Aviation is a good citizen of its communities,” Hooke added.
Funding for the acquisitions included approximately $123.0 million of equity capital raised in a follow-on offering by MIC in December 2013. The balance of the funding included drawings on an expansion of an existing Atlantic Aviation debt facility and available cash.
In addition to generating incremental EBITDA, MIC noted that the transactions extend the weighted average remaining lease life of the Atlantic Aviation portfolio to 19.7 years. The relatively long-dated leases provide MIC with good visibility into the cash generating capacity of the Atlantic Aviation business.
At the end of the first quarter Atlantic Aviation operated at 63 airports. On April 15, the business sold its operations at Sacramento Mather Airport in California. With the acquisitions of the Galaxy and Boca Aviation facilities, Atlantic Aviation now operates at 68 airports in the U.S.
About Macquarie Infrastructure Company
Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses providing basic services to customers in the United States. Its businesses consist of a gas processing and distribution business, Hawaii Gas, several entities comprising a Contracted Power and Energy segment, and a 50% interest in a bulk liquid terminals business, International-Matex Tank Terminals. MIC also owns and operates an airport services business, Atlantic Aviation. The Company is managed by a wholly-owned subsidiary of the Macquarie Group. For additional information, please visit the Macquarie Infrastructure Company website at www.macquarie.com/mic.
MIC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of MIC do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of MIC.