Private-jet company Wheels Up is merging with a SPAC to go public at a valuation of more than $2B -- "more than twice" its '19 value, according to Robert Frank of CNBC.com. The deal, expected to close in Q2, will make Wheels Up the "first publicly traded standalone private jet company." The deal is expected to provide about $790M in "cash proceeds." This "marks a validation" for Wheels Up Founder & CEO Kenny Dichter, who also created Marquis Jet, which was later sold to NetJets (CNBC.com, 2/1). The WALL STREET JOURNAL's Dave Sebastian notes Wheels Up is "combining with Aspirational Consumer Lifestyle Corp." in a deal that gives the jet company an enterprise value of $2.1B. The company said that it "flew more than 150,000 passengers on private flights with more than 1,500 aircraft" in '20, at a time when commercial flights and travel at large were "battered by Covid-19 government restrictions." Wheels Up expects to post $690M in '20 revenue, up from $385M in '19 (WALL STREET JOURNAL, 2/2). Dichter said with the SPAC merger “we’re bringing $790 million of fresh capital to the business.” The company “will be able to be very strategic in how we go out and globalize while we democratize and digitize" ("Squawk Box," CNBC, 2/2).
GETTING PAID: In Miami, Rob Wile notes Wheels Up "will net a select group of Florida residents serious wealth after they made early investments." Among the earliest investors were former MLBers Alex Rodriguez and Mike Piazza (MIAMI HERALD, 2/2).
