Private equity firm Carlyle Group LP (CG.O) has been exploring a sale of aircraft leasing and maintenance company Landmark Aviation for as much as $1.7 billion, including debt, people familiar with the matter said on Friday.
The business jet market is slowly recovering from a downturn sparked by the global financial crisis, helping valuations for companies offering services to that industry.
Carlyle initially looked at cashing out of Landmark via a stock market listing, but in the past few months has broadened out that process to include a possible outright sale.
Two of the sources said that Landmark Aviation's earnings before interest, taxes, depreciation and amortization (EBITDA) were around $170 million over a trailing 12-month period.
The sources asked not to be identified because the deliberations are not public.
Carlyle declined to comment. Representatives for Landmark Aviation did not immediately respond to a request for comment.
Houston, Texas-based Landmark Aviation provides engine maintenance, repair and overhaul, and nose-to-tail services that include airframe, interior refurbishments, paint and charter management for private aircraft.
A peer of Landmark Aviation, Scottsdale, Arizona-based aircraft maintenance services company StandardAero, was sold by Dubai Aerospace Enterprise Ltd to buyout firm Veritas Capital Fund Management LLC in July for $2.1 billion.
In 2007, Carlyle had sold Landmark Aviation to state-owned Dubai Aerospace, which simultaneously purchased StandardAero in a joint transaction valued at $1.8 billion.
Dubai Aerospace sold Landmark Aviation to private equity firms GTCR LLC and Platform Partners a year later. Carlyle then purchased Landmark Aviation in 2012.
Separately, Carlyle announced the acquisition of cyber security firm Novetta Solutions on Thursday. Carlyle purchased McLean, Virginia-based Novetta from Arlington Capital Partners for $555 million, according to a source familiar with the deal.
Carlyle and Novetta declined to comment, Arlington Capital did not immediately respond to a request for comment.
Airbus has launched Alpha Component Solutions, a 50:50 joint venture with Air France dedicated to delivering comprehensive A350 component support services. Jointly operated by Airbus and Air Fran...
Archer Aviation Inc. and ITA Airways, Italy’s national carrier and a member of the Lufthansa Group, have entered into a strategic partnership to advance the deployment of an all-e...
Embraer and Austrian Airlines have signed a Component Pool Program agreement to support the carrier’s fleet of 13 E195 aircraft. Under the agreement, Austrian Airlines will gain access to Embrae...
What’s the point of buying Avios? You might think that Avios points are the frequent flyer currency of British Airways, and you’re not wrong. The airline launched the currency back in t...