Mercury Air Centers Now Under Allied Capital Umbrella
How much is an FBO chain worth? Well, Allied Capital Corporation's recent deal to purchase Mercury Air Centers Inc., the FBO chain serving 19 airports around the U.S., rang the cash register at $81 million, according to a press release from Allied Capital. The sale closed on April 12 after its original announcement on Oct. 28, 2003. Meanwhile, a press release from Mercury Air Group Inc., the FBO chain's parent company, valued the transaction at "only" $76,300,000, subject to adjustment. Mercury Air Centers comprise the nation's third-largest wholly owned fixed base operations. Owning an FBO chain might not be all that lucrative, though. Said Joseph A. Czyzyk, president and CEO of Mercury Air Group Inc., "For the first time in 50 years, Mercury Air Group will not be burdened with significant debt. After a required transition period, we will begin to focus on the growth of our remaining businesses."