Apollo acquires stake in Atlantic Aviation alongside KKR
The deal values the company at nearly $10bn.
Apollo and KKR have announced strategic partnership to support growth of Atlantic Aviation with Apollo-managed funds acquiring a significant interest and KKR-managed funds remaining as a substantial shareholder.
The deal values Atlantic Aviation at nearly $10bn.
“Apollo funds have acquired a significant equity ownership stake in the business,” an Apollo spokesperson told Corporate Jet Investor. “The strategic partnership will help Atlantic capture growth through both ‘targeted investment and strategic new market expansion’,” the company spokesperson told us.
Atlantic Aviation is one of the largest providers of fixed-base operator services in the United States, offering aircraft fueling, hangar leasing and other infrastructure.
“Atlantic has built an irreplicable infrastructure footprint across the nation’s busiest airports, underpinned by long-term concession agreements and a customer base that values reliability and service above all else,” said Apollo Partner David Cohen. “The private aviation market has structural tailwinds that we believe will persist, and Atlantic is well positioned to capture that growth.”
“Atlantic Aviation exemplifies the kind of scaled, essential infrastructure platform we seek to build in our portfolio,” said KKR partner Dash Lane. “Over the past five years, we have worked closely with [CEO] Jeff [Foland] and the team to expand and strengthen the business, and we believe there is meaningful opportunity ahead.”
KKR acquired Atlantic Aviation in 2021, since which the company has expanded its locations through acquisitions and organic growth in the U.S. and select international markets.
“This transaction is more than a milestone for Atlantic; it is a powerful validation of what our people have built together,” said Jeff Foland, CEO of Atlantic Aviation. “To have two of the world’s most respected investment firms choose to invest in our company is an extraordinary endorsement of our people, our performance and our potential.”
Apollo has originated more than $155bn of infrastructure transactions and financings across the energy, transportation, digital and industrial sectors over the past five years.
KKR’s infrastructure business manages more than $120bn in infrastructure assets globally and has invested more than $12bn in the aviation sector since 2015; the firm is funding its continued investment in Atlantic Aviation primarily through its infrastructure vehicles.
Paul, Weiss, Rifkind, Wharton & Garrison served as legal counsel to the Apollo Funds.
Evercore and Morgan Stanley & Co. served as financial advisors and Kirkland & Ellis served as legal advisor to KKR.
