The Carlyle Group LP (NASDAQ:CG) has been looking at a possible sale of Landmark Aviation, an aircraft leasing and maintenance firm, for up to $1.7 billion that includes debt, according to Reuters citing sources familiar with the matter.
The business jet industry is gradually recovering from a slump ignited by the worldwide financial downturn, helping valuations for firms providing services to that market.
Initially, Carlyle planned to cash out Landmark Aviation through a stock market listing, though it widened the process in the recent months and is now exploring a possible outright sale. According to the report, Landmark’s EBITDA were about $170 million in a trailing period based on one year.
Carlyle refused to comment on the story, while Landmark Aviation’s representatives were also not available for comment.
Based in Houston, Texas, Landmark Aviation offers engine maintenance, nose-to-tail, as well as repair and overhaul services, which include airframe, management of paint and charter for private planes, and interior refurbishments.
One of the Landmark Aviation’s peer, StandardAero was acquired by Veritas Capital Fund Management LLC last month from Dubai Aerospace Enterprise Ltd, in a deal valued at $2.1 billion. StandardAero is an aircraft maintenance services firm based in Scottsdale, Arizona.
Back in 2007, state-owned Dubai Aerospace acquired Landmark Aviation from Carlyle. Subsequently, private equity firms Platform Partners and GTCR LLC acquired Landmark Aviation from Dubai Aerospace a year later. Following that, Carlyle again purchased Landmark Aviation three years ago.
In separate news, Carlyle recently disclosed the acquisition of Novetta Solutions, a cyber-security firm. Based in McLean, Virginia, Novetta was acquired by Carlyle in a transaction valued at $555 million from Arlington Capital Partners, people close to the deal said.
Arlington Capital didn’t responded to the news, while Carlyle and Novetta also refused to comment.
