Allied Capital, a Washington, D.C.-based business development firm, last month finalized a complex, controversial $81 million deal (including closing costs) to acquire the Mercury Air Centers (FBO) division of Los Angeles-based Mercury Air Group.
Mercury Air Centers operates 20 FBOs nationwide (including the newly acquired Flight International facility at Newport News, Va.) and was one of four Mercury Air Group divisions. Allied also has agreed to commit to funding $10 million in senior subordinated debt for future working capital and construction commitments.
“The fixed-base operations industry has very attractive economics for established companies,” said Allied Capital chairman and CEO Bill Walton, when he announced his intention to acquire Mercury last October. A spokesman for Mercury told AIN that Allied intends to continue to operate Mercury Air Centers as a going concern, rather than sell off the FBOs piecemeal. No information on planned management changes was available at press time. John Enticknap has been president of the division.
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