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Dubai Aerospace to buy aircraft service units from Carlyle for $1.8Bnews
03 April 2007
New York: Dubai Aerospace Enterprise Ltd (DAE) said Monday it will buy two aircraft servicing companies, Standard Aero Holdings Inc and Landmark Aviation, from private-equity firm Carlyle Group for $1.8 billion (euro1.35 billion).

While US company Landmark is into aircraft-maintenance, Canada-based Standard Aero Holdings Inc overhauls engines and turbines used in small-jet aviation and a small number of military transports.

The filing said the acquisition of Washington-based Carlyle's aviation businesses is subject to federal government approvals, including the Committee on Foreign Investments in the United States (CFIUS).

Standard Aero, Landmark and DAE have provided an informational briefing to CFIUS and are expected to make a formal filing shortly.

According to a filing with the Securities and Exchange Commission, $1.034 billion (euro770 million) of the acquisition price for the two firms will be paid for the purchase of Standard Aero.

DAE chief executive Bob Johnson had earlier indicated that the company is already drawing up plans to dispose of parts of the companies to meet US foreign ownership rules on certain assets.

The transaction is expected to close during the third quarter of this year.

DAE is building a collection of global businesses around aircraft finance, manufacturing and engineering. The company's prime backers are some of the region's biggest investors, including investment fund Isthimar, property developer Emaar, and publicly listed Islamic financing group Amlak Finance.

The aerospace industry is watching carefully how these acquisitions fare with the US Congress. Last summer, port operator Dubai Ports World faced a massive outcry against its plans to buy a set of US-based shipping facilities. While any investment in sensitive American concerns raise eyebrows in the US, it also needs to be taken into account that ever-larger capital flows are now occurring from the Arab world into the United States and Europe.

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Dubai Aerospace to buy aircraft service units from Carlyle for $1.8B