Blackstone, Carlyle in talks to take Signature Aviation private

Katharine Hidalgo
08 January 2021

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Blackstone Group and Carlyle Investment Management are each in talks to de-list aviation services company Signature Aviation.

Blackstone has secured the support of Cascade Investment, Bill Gates' investment company, for a proposal that would see the consortium acquire Signature for 381 pence per share. Cascade Investment, which currently owns 20% of the business, will have a 30% stake in the acquisition vehicle, while Blackstone will own the remaining 70%.

In case of a firm offer, Cascade is likely to contribute around 17.18% of its Signature stake and make a substantial cash investment to Bidco, according to a report by Unquote sister publication Mergermarket.

Blackstone is currently investing from Blackstone Capital Partners VIII, which closed on $26bn in September 2019 and targets 12-15 control investments per year in businesses that require $150m-2bn or more in equity.

The company has also confirmed the receipt of a takeover offer from Carlyle, which is said to value the business at £3bn. Merrill Lynch and Morgan Stanley are advising the firm, which is currently investing from its fifth-generation Europe fund, which closed on €6.4bn in October 2019.

Global Infrastructure Partners has also indicated its interest in a bid for Signature, which is said to be at a lower level than Blackstone's proposal, according to a report by Sky News.

The London-based company is a fixed-base operation network for business and general aviation travellers. Founded in 1879, the business generated $2.26bn in 2019. At the time of publication Signature Aviation was trading at 400 pence a share.