BBA Aviation proposes to acquire Landmark for $2.06 bn

The acquisition will be funded via new debt facilities and a fully underwritten rights issue of 562,281,811 shares at an issue price of 133 pence per share, raising about 748 million pounds (USD 1.15 billion), the company said on Wednesday.

Landmark Aviation has been exploring a sale as the corporate jet market is slowly recovering from a downturn sparked by the global financial crisis, helping valuations for companies offering services in the industry.

Agency reported on Tuesday, citing sources, that BBA Aviation planned to acquire Landmark Aviation.

Houston, Texas-based Landmark Aviation provides engine maintenance, repair and overhaul, and nose-to-tail services that include airframe, interior refurbishment, paint and charter management for private aircraft.

BBA Aviation said the acquisition was expected to add to its EPS in 2017, and the return on invested capital was expected to exceed the weighted average cost of capital in 2018.