BBA Aviation confirms discussions with DAE, signs deal with Signature Flight Support

27th Aug 2013 07:54

BBA Aviation revealed Tuesday that it was in preliminary discussions with Dubai Aerospace Enterprise (DAE) about a potential business combination with parts of DAE's business, following press speculation over the weekend. According to the Sunday Times, the two parties are considering the merger of DAE's StandardAero unit, which it bought in 2007, into BBA in return for a stake in the group. The group stressed there was no certainty the talks would result in a transaction. BBA the same day announced that its Signature Flight Support business had agreed to acquire Maguire Aviation Group for $69m. The deal, which was expected to complete by the end of the calendar year, will extend the business's position at Van Nuys Airport, where Maguire Aviation is based, to 1.17m square foot of hangar space, ramp, passenger lounges, and office space. Following the acquisition, Signature will also own and operate the dedicated NetJets facility on the field, the second in its network.The group said the acquisition was expected to be earnings enhancing in the first full year of ownership and to meet BBA Aviation's 12% pre-tax return on invested capital target by year three.Simon Pryce, BBA Aviation Group's Chief Executive added: "The acquisition of Maguire Aviation is a continuation of Signature's value disciplined growth strategy. It significantly extends Signature's position on one of the largest business and general aviation airports in the world and a key gateway location in the US. "In addition, it allows Signature to extend its industry leading FBO services to Maguire's existing customers and to introduce them to the benefits of the Signature global network."NR