BBA Aviation, parent company of Signature Flight Support, announced May 23 that it will purchase privately held Epic Aviation for $88.1 million. The transaction is subject to government and regulatory approval, and BBA expects it could be wrapped up by the third quarter.
Texas-based Epic provides aviation fuel supply, logistics, transaction processing and through its QT Pod subsidiary, self-service fueling devices. It currently provides fuel and fuel-related services to 205 privately owned, independent FBOs, 185 of them Epic-branded and the remainder under the UVAir umbrella
According to BBA (Booth O104), Epic will act as a separate operating business within its portfolio. The addition of Epic's locations will complement the existing Signature Select affiliate program, which will operate alongside Signature’s owned FBO network, bringing it to more than 400 locations worldwide.
“We are pleased to have reached an agreement to acquire Epic,” stated BBA CEO Mark Johnstone. “This acquisition fully supports the strategic development of Signature through increasing our network relevance, extending the range of fuel and non-fuel services we offer our customers across our FBO network and continuing to establish a competitive cost structure through investment in technology and economies of scale.”
The purchase also expands the existing relationship between the two companies, which saw the development of the Epic/Signature Multi-Service Aviation Card, which is accepted for payment at more than 8,000 locations worldwide, through U.S. Bank’s Multi Service Aviation Network.
BBA Aviation (Booth O104), parent company of Signature Flight Support, announced last week that it has agreed to purchase privately held Epic Fuels for $88.1 million in a cash transaction. The Texas-based company provides global aviation fuel supply, logistics, transaction processing—and through its QT Pod subsidiary, self-service fueling devices. BBA expects that Epic, which currently provides fuel and fuel-related services to 205 privately owned, independent FBOs (185 of them Epic-branded, the remainder under the UVAir umbrella) will act as a separate operating business within its portfolio. While those locations within the Epic network will remain independent, with their current branding and fuel supply, they will complement the existing Signature Select affiliate program, which will operate alongside Signature’s owned FBO network, bringing it to more than 400 locations. The company would like to integrate all those locations into its TailWins loyalty program eventually.
“This acquisition fully supports the strategic development of Signature through increasing our network relevance, extending the range of fuel and non-fuel services we offer our customers across our unique FBO network, and continuing to establish a competitive cost structure through investment in technology and economies of scale,” stated BBA CEO Mark Johnstone, who assumed the head position at the beginning of April. “It does increase our buying power to an extent, in terms of we buy circa 300 million gallons [of aviation fuel a year]. This adds another 200 million.”
He explained that Signature’s fuel sourcing will not change. “Certainly we have a trans-North American footprint, and one of the reasons we use multiple suppliers is because they have different relationships with refineries and the ability to supply in certain parts of the country,” he explained. “I think it is important that we continue our relationships with our existing suppliers in the same way we always have done.”
The purchase also expands the existing relationship between the two companies, which saw the development of the Epic/Signature Multi-Service Aviation Card, which is accepted for payment at more than 8,000 locations worldwide, through U.S. Bank’s Multi Service Aviation Network. The acquisition would allow Signature to have end-to-end management of the existing fuel card program, along with its associated transaction processing and data capture, to enhance its service offerings across its entire network. “One of the things we historically haven’t been able to do is supply fuel, credit and transaction processing to those [affiliated] FBOs,” Johnstone told AIN. “So Epic is very important because it gives us that opportunity now in a way to really offer a full complement of services to some of these independently owned FBOs.”
“Over the past 78 years of continuous operations, Epic has developed a loyal, diverse, and supportive customer base,” said Epic president Kevin Cox, who will continue to run the company. “This acquisition will generate significant opportunities for all of our customers who depend upon our team for fuel, services, and award-winning fueling devices.”
For BBA, the $88.1 million transaction would signify its largest purchase since it acquired Landmark Aviation in 2016. The UK-based company expects the deal, subject to government and regulatory approval, to be completed by the third quarter of 2018.