Blackstone, Cascade and Global Infrastructure Partners Announce Terms of a Recommended Offer for Signature Aviation plc

05 February 2021

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION

– Recommended offer price of $5.62 per share. The Sterling equivalent value being 411 pence per share representing an approximate 53 per cent premium to the closing price of 268 pence per share on 16 December 2020^[1]

London, 5 February 2021 – Blackstone Infrastructure Partners, Blackstone Core Private Equity, Cascade and Global Infrastructure Partners (together, the “Consortium”) today announced the terms of a recommended offer for Signature Aviation plc (“Signature”).

The recommended offer is made by the Consortium at a price of $5.62 per share in cash, for the entire issued and to be issued share capital of Signature not owned by Cascade and the Bill & Melinda Gates Foundation Trust (“BMGFT”).

The recommended offer values the entire issued and to be issued share capital of Signature at approximately $4,727 million, equivalent to £3,460 million, representing an approximately 53 per cent premium to the closing price of 268 pence per share on 16 December 2020 and an approximately 65 per cent premium to the volume-weighted average price per share for the three-month period ended 16 December 2020.^[2]

Background to the Acquisition

The Consortium believes that Signature is a high-quality business with a long-standing position as a leader in the provision of aviation services, an attractive long-term asset base, a group of dedicated and experienced employees and management, and a highly-valued customer brand and network. These are all characteristics consistent with the investment mandates of the Consortium’s investors.

The Consortium is excited to partner with Signature to continue developing the business through investing in the customer offering and future growth of its footprint, both through organic growth and targeted, bolt-on acquisitions. As operationally focused investors with significant relevant experience, the Consortium intends to support Signature to develop a stronger and more customer-focused business. Furthermore, the Consortium is equipped with the appropriate through-cycle, long-term investment horizon, expertise and capital required to help Signature deliver its long-term potential.

Commenting on the Acquisition Sir Nigel Rudd, the Chairman of Signature, said: ““Over recent years, the management of Signature has created a leading global private aviation support services business, whilst streamlining the group to maximise value for shareholders. The resilient performance and strong financial position through the pandemic has enabled the Signature Board to consider its future and evaluate this offer from a position of strength.

We believe that the offer from Blackstone, GIP and Cascade represents an attractive and certain value in cash today for Signature shareholders reflecting the high quality of the business and its network, its people and its future prospects, and at a higher price than the previous GIP offer announced on 11 January 2021. The Signature Board believes that the proposal provides clear benefits to our shareholders and the operational and financial resources of Blackstone, GIP and Cascade will generate enhanced opportunities for our employees, and ensure continued high quality, full services flight support for B&GA travel.” 

Commenting on the announcement Greg Blank, a Senior Managing Director in Blackstone’s Infrastructure business, said: “We are excited to partner with Signature and its exceptional team.  This investment aligns well with our infrastructure strategy of seeking to invest behind industry leading companies with whom we can partner to grow for decades.”

Commenting on the announcement Bruce McEvoy, a Senior Managing Director in Blackstone’s Private Equity business, said: “We are very pleased to back such a high-quality business and team, which we believe will thrive under long-term private ownership. We look forward to investing in Signature to further accelerate its growth and customer offering.”

Commenting on the announcement Adebayo Ogunlesi, the Chairman and Managing Partner of GIP, said: “We are delighted to partner with Blackstone and Cascade to make an improved offer for Signature. This is a powerful combination of private investors that is well placed to drive the Signature business forward. Our plan for Signature remains unchanged, putting customer service, operational consistency and growth at the heart of our strategy, supported by enhanced employee and stakeholder engagement and targeted investment. As with all our portfolio businesses, we are mindful of our responsibilities to all stakeholders and believe that Signature can innovate and evolve as both it, and the aviation industry more generally, deliver on their commitments to climate change.”

Commenting on the announcement Michael Larson, the Business Manager of Cascade, said: “Cascade has long believed in Signature and its ability to build the premier global FBO network that is sustainable over the long-term, having made its first investment in Signature in 2009.  We are excited to continue to support Signature and its employees, customers, and all stakeholders in the next phase of growth.”

It is intended that the acquisition will be implemented by way of a court sanctioned scheme of arrangement under Part 26 of the Companies Act 2006. It is anticipated that the scheme will, subject to obtaining the necessary regulatory approvals, become effective in the second quarter of 2021.

It is expected that Signature’s shares will de-list from the London Stock Exchange upon completion of the transaction.

This press release should be read in conjunction with the Rule 2.7 announcement available on Signature’s website at https://www.signatureaviation.com/investors/possible-offers-for-signature-aviation.

Enquiries:

Blackstone
Paula Chirhart
T: +1-347-463-5453
E: [email protected]

Stephen Lewis
T: + 44 (20) 7104-4547
E: [email protected]

About Blackstone
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $619 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

About Blackstone Infrastructure Partners
Blackstone Infrastructure is an active investor across energy, transportation, communications and water and waste infrastructure sectors. Blackstone Infrastructure seeks to apply a long-term buy-and-hold strategy to large-scale infrastructure assets with a focus on delivering stable, long-term capital appreciation together with a predictable annual cash flow yield. Blackstone Infrastructure’s approach to infrastructure investing is one that puts a focus on responsible stewardship and stakeholder engagement to create value not just for our investors but also for the communities we serve.

About Blackstone Private Equity 
With $198 billion of assets under management, Blackstone’s private equity business has been a global leader since 1985. We uncover value by identifying great companies and enhancing their performance by providing strategic capital and outstanding management talent. We aim to grow stronger enterprises, create jobs, and enable our portfolio companies to build lasting value for our investors, their employees and all stakeholders.  

^[1] Figures calculated by reference to the £:$ exchange rate of £1:$1.3663 as at 17:00 GMT on 4 February 2021 (being the last Business Day before the date of this announcement) as derived from data provided by Bloomberg

^[2] Figures calculated by reference to the £:$ exchange rate of £1:$1.3663 as at 17:00 GMT on 4 February 2021 (being the last Business Day before the date of this announcement) as derived from data provided by Bloomberg