Landmark is an integrated aviation service provider offering end-to-end support services to Business and General Aviation or B&GA customers.
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Landmark has 68 FBOs that are complementary to Signature’s existing network of 133 wholly owned and affiliate global locations.
Given the acquisition history of Landmark, its historical financial record is of limited relevance in assessing the scale, value and opportunity that Landmark represents for BBA.
London-based BBA, which has a market capitalization of about 1.3 billion pounds ($2 billion), has also been acquisitive in the United States, with several smaller acquisitions of on-airport facilities servicing corporate jets in the Boston, Massachusetts, and Detroit, Michigan, areas in recent years.
Air services supplier BBA Aviation (LON:BBA) is buying Landmark Aviation for US$2.065bn to expand in the US.
Simon Pryce, chief executive of BBA, said the deal would help it to expand its Signature flight services brand around the world.
“We remain concerned about the outlook for the business aviation market, and BBA is significantly increasing its exposure to it with this deal”, Liberum analysts said in a note. News of the rights issue sent BBA stock down as much as 11% on Wednesday in early trading, although it recovered to close almost unchanged.
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In addition, the acquisition will trigger a change in tax status of Landmark’s intangible assets, resulting in the realisation of certain tax assets in the next 12-15 years worth about $240mln.
