KKR seals $4.4bn Atlantic Aviation buyout from Macquarie Infrastructure Corp

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Global buyout giant KKR has agreed a buyout of aviation services business Atlantic Aviation from New York-listed Macquarie Infrastructure Corporation in a $4.475bn cash deal.

Atlantic Aviation provides fuel, terminal and hangaring services for corporate and private jets. The purchase price represents a 16.2x multiple of the company’s 2019 EBITDA.

Earlier this year Atlantic’s UK competitor Signature Aviation was bought by Blackstone, Global Infrastructure Partners and Cascade Investments in a $4.6bn deal.

KKR partner Dash Lane said, “Atlantic Aviation has an outstanding reputation as a leading operator of critical aviation infrastructure across the US.

“With our focus on providing long-term capital to support the growth of high quality and resilient businesses, we are excited to invest alongside Atlantic’s experienced team and strong existing platform which we believe is well positioned to capitalize on multiple avenues of future growth.”

KKR said it had mainly tapped its Global Infrastructure Investors and Core Investments strategies for the deal.

The firm raised $7.4bn for its third global infra fundraise in 2018, and is believed to be seeking up to $12bn for Fund IV.

KKR carried out its biggest ever fundraise last month, bringing in $18.5bn for its new North America vehicle in less than five months.

The firm has been busy on the dealmaking side in the past few months, most recently taking UK infrastructure group John Laing private in a £2bn buyout. It bought into US fibre-optic communications business MetroNet in April.

KKR brought in Tim Short and Benoit Allehaut from Capital Dynamics in April to boost its global infrastructure team.

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