Wheels Up Announces SPAC-Based IPO Valued At $2.1 Billion
Wheels Up, the second largest provider of for-hire private aircraft after NetJets, has entered into a definitive agreement to become publicly-traded via a merger with special purpose acquisition company, Aspirational Consumer Lifestyle Corp. (NYSE: ASPL), in a transaction that values Wheels Up at an enterprise value of $2.1 billion. According to an SEC filing, after the deal closes, projected for Q2, the parent company will be renamed Wheels Up Experience Inc.
The deal brings the private aviation solutions provider together with a SPAC that counts funds associated with luxury conglomerate LVMH and its boss, Bernard Arnault (Forbes #3, $146.8 Billion Net Worth), as minority investors.
Founded in 2013 selling private aviation memberships on a fleet of three King Air 350i turboprops, during a two-year expansion binge Wheels Up bought four of the 10 largest U.S. charter operators, including Delta Private Jets, bringing aboard Delta Air Lines as its largest minority shareholder. It currently owns, leases, or manages over 350 private jets and turboprops. Its vetted network of third party operators offers members access to over 1,500 private aircraft. Its most recent deal was the acquisition of Mountain Aviation last month.
Delta is expected to have a significant stake in the new entity and Wheels Up management will continue, according to a press release.
According to the announcement, the transaction is expected to deliver up to $790 million of gross proceeds to the combined company, including the contribution of up to $240 million of cash held in Aspirational’s trust account from its initial public offering in September 2020. The combination is further supported by a $550 million PIPE at $10.00 per share, including commitments from T. Rowe Price, Fidelity, Franklin Advisors, Durable Capital, HG Vora Capital Management, Third Point, Luxor Capital, and Monashee, among others. Existing Wheels Up shareholders will roll 100 percent of their equity into the new company. Upon completion of the transaction, Wheels Up expects to have up to $750 million in cash on its balance sheet to fund operations and support new and existing business initiatives.
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