Dubai Firm Reportedly Will Pay $1.5 Billion

As reported yesterday in AINalerts, Dubai Aerospace Enterprise (DAE) is in “active discussions” with Washington, D.C.-based Carlyle Group to acquire its Landmark Aviation and Standard Aero companies. According to people familiar with the process, DAE is expected to pay more than $1.5 billion for the two firms. The deal would give DAE, founded early last year as an investment arm of the Dubai government, a foothold in North America if the transaction makes its way successfully through what could be a daunting U.S. government approval process. DAE is interested solely in the maintenance, repair and overhaul (MRO) businesses of Landmark and Standard Aero and, to this end, is “committed” to selling off Landmark’s FBO chain at some 30 locations in the U.S. and Canada as soon as possible after the acquisition closes. Phoenix-based Landmark Aviation comprises the former engine and airframe maintenance firm Garrett Aviation, FBO chain Piedmont Hawthorne, several formerly independent FBOs and large aircraft completions and refurbishment center Associated Air Center. The Landmark name was chosen for the group in October 2005.