A source close to Mercury Air Group’s top-level management team has told AIN that the sale of the company’s FBO division, Mercury Air Centers, has been delayed. Originally expected to close at the end of January, the deal with Washington, D.C.-based business development firm Allied Capital remains in the due-diligence phase and is now expected to close about the middle of next month. Mercury Air Centers operates a chain of 19 FBOs nationwide, concentrated in the Southeast and on the West Coast.
In a complicated financial arrange- ment announced last November, Allied Capital signed a definitive purchase agreement to acquire the division, one of four business segments of Los Angeles-based Mercury Air Group. The $70 million transaction would also involve Allied Capital purchasing $24 million in debt from parent company Mercury Air Group, which would be repaid to Allied Capital from proceeds of the deal.
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