Corporate jets are back: BBA buys rival Landmark for £1.3 billion

Jet thrust: BBA wants a bigger slice of the soaring corporate flight market

Bombardier

Angela Jameson23 September 2015

BBA Aviation, the airport services group, is buying its US rival Landmark in a £1.3 billion deal.

The deal will increase the number of BBA’s business jet terminals worldwide from 133 to 194 at a time when resurgent economies in the UK and the US are prompting a recovery in demand for corporate jets.

Most terminals for business jets are in North America, where BBA Aviation is already the biggest operator.

Buying Landmark, which is owned by US private equity giant Carlyle Group, increases its market lead significantly.

The deal will be funded by new debt and a rights issue that will raise about £748 million.

787-9 Dreamliner First Class - British Airways

Shares will be issued at 133p, compared with yesterday’s close of 284.7p.

Simon Pryce, chief executive of BBA, said the deal would help it to expand its Signature flight services brand around the world.

“This is a transformational step in the continued execution of BBA Aviation’s strategy that is both strategically and financially compelling. It represents a unique opportunity to materially expand our global Signature FBO [fixed base operator] business,” Pryce said.

Combined costs will be $35 million lower, although the costs of the deal will be $25 million and the company is planning investments of $19 million.