acquistion

Carlyle Agrees to Sell PrimeFlight Aviation Services to The Sterling Group and Capitol Meridian Partners

March 6, 2023

Large and growing market, breadth of service offerings and customers served, and strong operating performance all position PrimeFlight to drive continued growth

Washington, DC and Houston, TX – Funds managed by global investment firm Carlyle (NASDAQ: CG) today announced a definitive agreement to sell PrimeFlight Aviation Services (“PrimeFlight” or the “Company”) to Capitol Meridian Partners and The Sterling Group. PrimeFlight is a global provider of essential aircraft, passenger, and security-related services to commercial airline, airport, cargo, and general aviation customers.

The transaction will close upon satisfaction of customary closing conditions. Financial terms were not disclosed. The acquisition of PrimeFlight will represent a 50/50 partnership between The Sterling Group and Capitol Meridian Partners.

Headquartered in Sugar Land, TX, PrimeFlight has operations across approximately 235 stations globally. It provides a full suite of services through its network of subsidiaries, including PrimeFlight Cargo, PrimeFlight GSE Maintenance, Prime Appearance, ProFlo Industries, Skytanking, and Aviation Cleaning Supply. PrimeFlight has more than 20 years of service excellence in the aviation industry, offering customers broad and reliable support, including mission-critical fueling, deicing, and ground handling services. The Company has approximately 12,000 employees across its global footprint, with primary operations in North America and Europe.

Doug Brandely, Managing Director at Carlyle, said: “We are grateful to have had the opportunity to partner with the management team to lead the transformation of PrimeFlight. The PrimeFlight team expertly navigated an unprecedented time in the commercial aerospace industry to deliver substantial growth. Over the course of our partnership, we completed 20 acquisitions to build a global aviation services platform. PrimeFlight has an impressive runway for future growth, and we look forward to seeing the Company’s continued success.”

“We’re thankful to Carlyle for the tremendous support over the years,” said Dan Bucaro, PrimeFlight Chief Executive Officer. “This is an exciting time for PrimeFlight as we have significantly expanded our operations outside of North America, continue to execute on new business wins, and we have a strong pipeline of continued growth through our global footprint. We look forward to partnering with Capitol Meridian Partners and The Sterling Group in this evolution.”

Adam Palmer, Partner and Co-Founder of Capitol Meridian Partners, said: “We are thrilled to once again partner with the PrimeFlight management team in support of the Company’s next phase of growth. PrimeFlight represents a unique opportunity to partner with a management team for a second time on the same platform. We are excited to invest behind the Company in support of their organic and inorganic growth strategy, during a time in which the aviation industry is continuing its strong recovery from the pandemic.”

Greg Elliott, Partner of The Sterling Group, added: “We have partnered with Dan Bucaro as either CEO or Chairman on nine companies over the past twenty years. Dan and his team of industry veterans have built a tremendous platform for growth in PrimeFlight. We look forward to our continued partnership.”

Latham & Watkins, LLP is serving as legal counsel to PrimeFlight and Carlyle, and Morgan Stanley & Co LLC and Jefferies, LLC served as financial advisors to PrimeFlight. McDermott Will & Emery is serving as legal counsel to Capitol Meridian Partners and The Sterling Group.

About The Sterling Group

Founded in 1982, The Sterling Group is a private equity and private credit investment firm that targets investments in basic manufacturing, distribution, and industrial services companies. Typical enterprise values of these companies at initial formation range from $100 million to $750 million. Sterling has sponsored the buyout of 64 platform companies and numerous add-on acquisitions for a total transaction value of over $14.0 billion. Sterling currently has over $5.1 billion of assets under management. For further information, please visit www.sterling-group.com.

About Capitol Meridian Partners

Capitol Meridian Partners is a Washington, DC-based private investment firm formed in 2021 to invest in businesses operating at the nexus of government and commercial markets. The firm targets businesses where it can drive growth and value creation through active engagement and strategic transformation. The firm draws upon deep sector expertise and 70+ years of its principals’ investing experience. For further information, please visit www.capitolmeridian.com.

About Carlyle

Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $373 billion of assets under management as of December 31, 2022, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 2,100 people in 29 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.

About PrimeFlight Aviation Services

Headquartered in Sugar Land, Texas, PrimeFlight Aviation Services provides major airlines, airports, cargo and general aviation customers with GSE maintenance, ground handling services, aircraft services, into-plane fueling, deicing, aviation cleaning supplies, and terminal services, across a global footprint. For more information, visit hcwbeu.fwjztnv.com.