BBA, DAE Merger Talks Surface

By Kerry Lynch, John Morris
Source: AWIN First
August 28, 2013
Credit: BBA

BBA Aviation and Dubai Aerospace Enterprise (DAE) are exploring possibly merging certain parts of their businesses, a combination that, depending how much of the businesses would be merged, could create one of the largest independent engine and airframe maintenance, repair and overhaul (MRO) entities, with annual revenues approaching $2.5 billion.

Both BBA and DAE this week confirmed rumored reports that the two entities were in talks. DAE calls the discussions on a “potential combination of certain parts of its business” preliminary and says there are no other details at this time. BBA adds that “there can be no assurance that the discussions will result in a transaction.”

The companies did not discuss which portions of their respective businesses would be included in a merger, or how much of a stake each would hold. But the combination would not come as a complete surprise since DAE has been rumored for some time as wanting to either spin off, sell or look at other options for its StandardAero business. BBA, meanwhile, has been on an aggressive acquisition trail, and a merger with StandardAero could triple its aftermarket revenue base.

DAE, founded in 2006 with the backing of the Dubai government, acquired StandardAero from The Carlyle Group in 2007 as part of a $1.9 billion deal that included the Landmark Aviation chain of fixed-base operations. DAE later sold the FBOs for $400 million.

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