KKR is considering a potential $10bn sale or IPO of Atlantic Aviation, the US-based fixed-base operations network it acquired for $4.5bn in 2021, according to sources cited by Bloomberg. 

The firm has appointed financial advisers to evaluate strategic options, including a partial sale or public listing.

Atlantic Aviation operates more than 100 FBOs across the US, providing fueling, maintenance, deicing, hangar leasing, and concierge services for private aircraft. The business is seen as a stable, infrastructure-like asset class that continues to draw interest from global investors, including airport operators, aircraft lessors, and large infrastructure funds.

Investor appetite for aviation infrastructure remains robust. In 2021, Blackstone and Global Infrastructure Partners jointly acquired Signature Aviation—the world’s largest FBO operator—for $4.7bn. A similar level of interest could be expected for Atlantic, given its national scale and consistent cash flows.

The process remains in early stages, and KKR may ultimately decide to retain the asset. However, the exploration comes amid an active M&A period for the firm. In April alone, KKR has executed or initiated over $8bn in deals, including its $3bn+ acquisition of OSTTRA and a move to acquire German IT services company Datagroup.

Source: Bloomberg