Will Buy Out Current Airline Shareholders
Global private equity firm The Carlyle Group announced this
week it has reached an agreement to acquire ARINC Incorporated from
its current shareholders, including several commercial airlines.
The transaction is expected to close in the third quarter of 2007
subject to regulatory approval and other customary closing
"This is an important step in the evolution of ARINC," said John
M. Belcher, Chairman and CEO of ARINC Incorporated. "We have worked
very hard to find a partner who shares our vision, and believe that
Carlyle's international presence, financial resources, and
expertise in the aerospace, defense, and communications sectors
will be instrumental in the continued expansion of our business.
With the support of our dedicated and talented employees, ARINC is
committed to maintaining the highest levels of customer service and
Though financial details were not disclosed, the Wall Street
Journal reports the sale will likely result in a "small windfall"
for ARINC's shareholders -- including American Airlines, Delta Air
Lines, Northwest Airlines, Continental Airlines, United Airlines
and US Airways. Combined, the airlines owned some 90 percent of
Peter Clare, Carlyle Managing Director and Head of the Global
Aerospace and Defense sector team, said, "We have long admired
ARINC's leadership position and impressive track record of growth.
We believe that ARINC is well positioned to capitalize on several
favorable macro trends in both its commercial and government market
Ian Fujiyama, the Carlyle Managing Director who led the
transaction, added, "John and his team have successfully leveraged
ARINC's unique domain expertise and technology leadership to offer
innovative new solutions to its customers. We look forward to
partnering with ARINC in continuing to build on its record of
Headquartered in Annapolis, MD, ARINC has approximately 3300
employees in 100 offices worldwide, generating annual revenues in
excess of $900 million. The company has been the primary provider
of communications technology to the nation's airlines for nearly 80
years. It also provides communications solutions to airports, and
other aviation-related industries.