Avia Solutions Group to acquire Chapman Freeborn
The forecasted revenue of the new group to reach €1 billion in 2019
Avia Solutions Group, a global multipurpose aviation holding, has entered into an agreement to acquire 100 per cent of the shareholding in UK-headquartered Chapman Freeborn Group - a worldwide market leader for aircraft charter solutions. The acquisition agreement was signed in London, United Kingdom on 14 June 2019.
The addition of Chapman Freeborn’s worldwide businesses will bolster current business lines portfolio of Avia Solutions Group - a global holding company with 42 subsidiaries engaged in aircraft maintenance, pilot training, ground handling and fuelling, aviation IT solutions and business aviation.
As part of the Avia Solutions Group, Chapman Freeborn will maintain its existing product portfolio and continue to operate under the group’s existing brands - including subsidiaries Chapman Freeborn Airchartering, Chapman Freeborn OBC, Intradco Cargo Services, Logik Logistics, Magma Aviation, and Wings 24.
The consolidated revenues of the two entities were €800 million for 2018 and are forecasted to reach €1 billion in 2019. After the acquisition is completed, subject to customary approvals, Avia Solutions Group will own 66 companies in 26 countries worldwide, with approximately 3300 professionals in total.
Gediminas Ziemelis, Chairman of the Board at Avia Solutions Group, said: “This acquisition is part of our strategic plan to expand our presence in key sectors, and significantly strengthens the capabilities of our group. Chapman Freeborn’s client portfolio and its outstanding level of expertise will greatly support our ambition to be the world’s leading aviation services provider”. “Avia Solutions Group and Chapman Freeborn both enjoy excellent reputations in the market, and together we share a common passion for delivering innovative client-focused services. With an even greater global footprint, we can harness the synergies of our two like-minded companies to achieve even more ambitious results.”
Russi Batliwala, CEO of Chapman Freeborn, said: “This is an important moment for Chapman Freeborn as we continue to expand the strength of our group around the world. Joining forces with Avia Solutions Group will provide us with a greater level of business scale, resources and expertise to accelerate growth and deliver our services to an even wider client base – all while preserving our unique company culture and ongoing commitment to charter market innovation.” He added: "Avia Solutions Group is the perfect strategic fit for us and their commitment to maintaining the approach that has made Chapman Freeborn successful for more than 46 years means this is an exciting opportunity - not only for us but also the charter industry more broadly."
The transaction is expected to be closed in Q3 2019. Financial terms are not disclosed.