Worldwide Flight Services, an aviation ground services provider that Castle Harlan acquired in March, this month purchased two other ground service providers, Miami Aircraft Support and Arrowlink, in separate transactions.
Castle Harlan Managing Director Marcel Fournier declined to discuss how his group financed the $66.4 million deal for Miami Aircraft, although he said Donaldson, Lufkin & Jenrette, along with Chase Securities Inc., in March put financing in place-$130 million in senior notes for a revolving credit line-when Castle Harlan acquired Worldwide.
Miami Aircraft Support, based in Miami, reported 1998 revenue of approximately $56 million. Its acquisition is expected to increase Worldwide Flight Service’s annual revenue by 25%, to more than $287 million from $230 million last year. Miami Aircraft also will add 2,000 employees and 19 new airports to Worldwide.
About 70% of Miami Aircraft Support’s revenue last year came from services to cargo express delivery companies such as United Parcel Service. These services include cargo loading, unloading and storage. For passenger airlines, Miami Aircraft and Worldwide provide baggage handling, cabin cleaning and passenger check-in and boarding services.
Arrowlink, based in Pittsburgh, employs approximately 400 people. It provides ground services to 11 airports and will add four new airports to Worldwide’s coverage. Fournier declined to disclose terms of the Arrowlink transaction. He said most of Arrowlink’s business comes from cargo delivery.
The two acquisitions bring Worldwide’s coverage to 86 airports serviced by approximately 10,400 employees.
Castle Harlan Partners III, which closed on $630 million in 1997, earlier this year acquired Worldwide Flight Services, formerly AMR Services, from AMR Corp.