BBA in merger talks to create £2.7bn company

The UK-based company, led by chief executive Simon Pryce, said it is in early stage talks over a combination with certain parts of Dubai Aerospace Enterprise (DAE) – thought to relate to its Arizona-based engine repair and maintenance business Standard Aero.

BBA, which dates back to 1879, is valued at around £1.4bn and specialises in providing aircraft services such as refuelling, baggage handling, aircraft cleaning and de-icing.

The firm was founded in Scotland, but is now based in London and has 12,000 staff across Europe, the US and South America.

It is thought DAE has put a £1.3bn price tag on Standard Aero, which has a 4,000-strong workforce and a client roster including engine and aircraft makers such as Rolls-Royce and Bombardier.

DAE would reportedly take a significant stake in the enlarged business. The deal would further boost BBA’s presence in its key market of America, where it already generates three quarters of group revenues.

As part of general moves to expand in the US, it also separately announced that its Signature Flight Support business had agreed to buy Maguire Aviation Group at Van Nuys Airport in Los Angeles, California, for $69m.

BBA grew profits by 14 per cent to £63.2m in the first six months of the year on turnover 2 per cent higher at $1.1bn.

The group’s shares have had a recent strong run, leaping more than 60 per cent over the past year. One of its subsidiaries, ASIG, provides services at Leeds Bradford Airport.

BBA first began as a small industrial belting works in Dundee, Scotland, and counted clients including automotive pioneer Henry Ford.

The company made its first major move into aviation with the acquisition of UK-based landing gear and hydraulics business APPH in 1986.