BBA Aviation buys business from US cargo airline Ameriflight

20th Oct 2014 10:16

BBA Aviation's Signature Flight Support business has agreed to acquire the fixed-base operator (FBO) assets of Wiggins Airways at Manchester-Boston Regional Airport from US cargo airline Ameriflight for $16.2m.The acquisition is expected to be earnings enhancing in the first full year of ownership and meet BBA Aviation's targets for returns by year three.The FTSE 250 aviation support and aftermarket services provider said the deal would extend Signature's existing network in the New England area serving both the Boston market and the nearby resort locations.The acquisition, which is being made on a cash and debt free basis, is expected to complete by the end of this year.The FBO has a 19-year residual lease term and consists of a passenger terminal and three hangars totaling 87,000 square foot, as well as its own fuel farms. The newly acquired assets will be branded Signature Flight Support and will operate as part of the Signature Flight Support network. In addition to its FBO services, the facility also provides fueling, de-icing and other related services to commercial airlines at the airport.Group chief executive Simon Pryce said: "The acquisition of the Wiggins Airways FBO is another example of Signature's disciplined execution of its growth strategy. Wiggins Airways is an attractively located FBO and further enhances the Signature network with the addition of a new location in this key business and general aviation region."This acquisition allows Signature to extend its industry leading FBO services to Wiggins Airways' existing customers and to introduce them to the benefits of the Signature network."