Saturday, September 15, 2012

Carlyle Re-Sponsors Landmark Aviation

Private Jet Investor reported:

The Carlyle Group has announced that it has agreed to acquire Landmark Aviation from GTCR and Platform Partners.

Equity capital for the transaction will come from Carlyle Partners V, a $13.7 billion buyout fund. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close in the fourth quarter of 2012. Terms of the transaction were not disclosed.

Here's what Private Jet Investor missed:  Carlyle owned Landmark Aviation from  August 2004 until August 2007.  It sold Landmark, along with Standard Aero to Dubai Aerospace for $1.9 billion.  Dubai Aerospace offloaded Landmark to GTCR for a reported $435 million.  

Reuter's sources suggest GTCR could've gotten as much as $700 million for Landmark.  PEHub said the deal went at $625 million.   That's still a $190 million profit over five years.  That beats Carlyle's profit on their other nightmarish trade, LifeCare Holdings.

Carlyle has until today to make good on an interest payment on LifeCare's debt.  If not, it's default time.

Update 2-14-16:  Carlyle sold Landmark to London based BBA Aviation for $2 billion.