Air Partner has acquired Redline Worldwide, a global aviation security solutions and training company, for total consideration of up to £10.0 million, on a debt free, cash free basis. An initial consideration of £8.0 million is payable on completion and additional consideration of up to £2.0 million payable over two years post completion. The acquisition is expected to be earnings enhancing in its first full year of ownership. The consideration is being funded from the company's existing cash and debt facilities and the issue of new ordinary shares to the operational management shareholders of Redline.
Established in 2006, Redline is a global leader in the delivery of government-standard security training and solutions to international airports, airlines and aviation sector related companies, critical national infrastructure, stadia and event managers, and corporates.
Redline is headquartered at the National Security Training Centre at Doncaster Sheffield Airport and employs approximately 100 staff.
In the year ended 31 March 2019, Redline generated revenue of £6.5 million, adjusted EBITDA of £0.8 million, with loss before tax of £0.7 million and gross assets of £2.0 million.
The acquisition further progresses Air Partner’s stated strategy of pursuing targeted acquisitions that enhance its customer offer by extending the suite of aviation services within its Consulting & Training division, which will now be called Air Partner Safety & Security.
The acquisition of Redline will transform this newly formed division, adding new capabilities, customers, geographies and management bandwidth, while unifying the Safety & Security functions.
Redline has long-term contracted revenues with global blue-chip customers, which will materially increase visible, long-term, recurring revenues for Air Partner for the financial year ending 31 January 2021 onwards. Redline also has good forward visibility of its forecasted revenues, a high customer retention rate and a healthy pipeline of new business opportunities. The management of Air Partner and Redline have together identified attractive global opportunities post acquisition, as a consequence of the combination with Air Partner's existing brands in aviation safety.
Paul Mason, Co-founder and Chief Executive Officer of Redline, will join the Air Partner group executive team, reporting directly to Chief Executive Officer Mark Briffa. Mason, who has been in the aviation industry for over 30 years and specialises in security consulting and training, has been appointed Managing Director of Air Partner's Safety & Security division, with responsibility for all the enlarged Group's activities in these areas. He will work alongside Kevin Macnaughton, Managing Director of Air Partner's Charter division, and the wider executive management team.
Post-acquisition and integration, Redline will be rebranded as "Air Partner Assured Security".
Mark Briffa, Chief Executive Officer of Air Partner plc, commented: "Redline has a world class reputation in the aviation sector for delivering first class security training and solutions to an international customer base. I am delighted to welcome Paul, Redline's employees, associates and customers to the Air Partner Group. Redline is a significant milestone in the development of our new Safety & Security division. This acquisition further extends our services into aviation security, and combined with our existing aviation safety activities, enables us to deliver a compelling suite of aviation safety and security products and services, both physically and digitally, to a high-quality global customer base.
Blackdown Partners acted as financial adviser to Air Partner and Park Place Corporate Finance acted as financial adviser to Redline Worldwide shareholders.