Here's a classic private equity shuffle: Apollo Global Management (APO) is circling the runway, in advanced talks to buy a controlling stake in private jet services company Atlantic Aviation from rival KKR & Co. (KKR). The price tag for this game of hot potato? A cool $10 billion.
According to reports, a deal could be announced in the coming days, but as with any high-stakes negotiation, nothing is final until it's signed. KKR could still decide to hold onto its investment. The plan, as it stands, involves Apollo teaming up with Singapore's sovereign wealth fund, GIC Pte, to take control. In a twist, KKR itself is reportedly looking to put fresh money into Atlantic Aviation to keep a minority stake in the company. So, it's not a full goodbye; more of a "see you later, but from a different seat at the table."
So, what is Apollo trying to land? Atlantic Aviation is a premier Fixed Based Operator (FBO). In plain English, that means it's the pit crew for private jets. It provides ground handling, fueling, and terminal services at over 100 locations across North America. It's the infrastructure that makes hopping on a private jet relatively seamless.
The timing of this potential acquisition is interesting. Just this week, Apollo announced it was selling a different company, CootIT Systems, to Ecolab for $4.75 billion. That sale is expected to close in the third quarter. For KKR, that CootIT deal is a major win; reports suggest it will generate roughly 15 times its original equity investment. Selling a piece of Atlantic Aviation would be another significant liquidity event for the firm.
In other Apollo news, the New York-based firm is reportedly scouting locations for a second headquarters, with Texas and South Florida in the running. It seems the private equity world is always in motion, whether it's trading multi-billion dollar companies or deciding where to open a new office.
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