Carlyle Group to Buy ARINC from Airlines, Other Shareholders

The Carlyle Group, a private equity firm, has agreed to acquire ARINC from its current shareholders, which include more than a dozen major airlines and Boeing.

Primary airline shareholders in the 77-year-old Annapolis-based company include American, United, Delta, Continental, Northwest, US Airways, Air Canada, Air France/KLM, Lufthansa, British Airways, Mexicana, Swiss International, TACA, FedEx, Hawaiian and Philippine.

While most carriers didn't immediately disclose their expected proceeds from the sale, American said it would receive $194 million and United expects $125 million. Other carriers did not immediately disclose expected proceeds and ARINC did not release financial details.

Carlyle invests in buyouts, venture and growth capital, real estate and leveraged finance in Asia, Europe and North America, with a focus on aerospace and defense, automotive and transportation, consumer retail, energy, healthcare, industrial, infrastructure, technology, business services, telecommunications and media.  Its portfolio companies have more than $87 billion in revenue and employ more than 286,000 people around the world.

ARINC earned $10.2 million in 2006. Its annual revenue has increased 72.7% from $532 million in 2000 to $919 million last year.

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