Apollo Global Management Inc. is acquiring a co-controlling stake in Atlantic Aviation from KKR & Co., in a transaction that values the private jet fixed-base operator at nearly $10 billion, the companies said.
Under the terms disclosed, funds managed by Apollo have purchased a significant interest in Atlantic Aviation. KKR-managed funds will continue as a substantial shareholder, with KKR retaining a meaningful stake after the closing.
Atlantic Aviation is a leading provider of fixed-base operator services in the United States, operating locations across the country that serve both corporate and general aviation customers. The company’s service mix includes aircraft fueling, hangar leasing and other on-ground aviation services. Those operations are underpinned by long-term airport concession agreements and a presence at high-activity airfields.
Since KKR’s acquisition of Atlantic Aviation in 2021, the company has broadened its footprint through a combination of strategic acquisitions and organic expansion in the United States and in selected international locations. KKR has also supported investments aimed at employee health and safety.
The deal builds on both firms’ activity in infrastructure and aviation-related investments. Over the past five years, Apollo reports originating more than $155 billion of infrastructure transactions and financings across energy, transportation, digital and industrial sectors. KKR’s infrastructure business manages in excess of $120 billion in infrastructure assets and, according to the company, has invested more than $12 billion across the aviation sector since 2015.
The transaction results in a co-control ownership structure for Atlantic Aviation, with Apollo-managed funds taking a major interest and KKR-managed funds remaining a substantial shareholder.
Summary
Apollo is acquiring a co-controlling stake in Atlantic Aviation from KKR in a deal valuing the company at nearly $10 billion. KKR will retain a significant ownership position while Apollo-managed funds become major investors. Atlantic provides FBO services nationwide and has expanded under KKR ownership since 2021.
Key points
- Transaction values Atlantic Aviation at nearly $10 billion and creates a co-controlling ownership structure between Apollo and KKR.
- Atlantic Aviation operates a nationwide network of FBO services - including fueling and hangar leasing - supported by long-term airport concession agreements.
- Both buyers have sizable infrastructure footprints: Apollo has originated over $155 billion in infrastructure transactions in recent years, and KKR’s infrastructure arm manages more than $120 billion, with over $12 billion invested in aviation since 2015.
Risks and uncertainties
- Co-control arrangement - The transaction creates a jointly controlled ownership structure, leaving some uncertainty about future governance arrangements at Atlantic Aviation. Sectors impacted: aviation services, private equity.
- Concession reliance - Atlantic’s operations are supported by long-term airport concession agreements; changes or renegotiations of those agreements could introduce operational or financial uncertainty. Sectors impacted: airport infrastructure, aviation services.