A Bournemouth-based airline has closed a minority equity investment that will be used to fund its growth.
European Cargo Limited (ECL) is a cargo operator that has a fleet of Airbus A340 long-haul aircraft and operates flights to the Far East and the US from Bournemouth Airport.
The investment was made by Priority 1 Logistics Holdings LLC, a newly-formed subsidiary of US-based Priority 1 Holdings LLC.
Proceeds will be used to eliminate third-party debt; convert European Cargo’s A340 fleet to full-cargo freighters; acquire extra aircraft; complete heavy maintenance checks; and for shareholder dividends, the firm said.
Paul Stoddart, chair of ECL, said the partnership with Priority 1 would provide the business with additional financial resources as well as “deep commercial aviation expertise”.
He said: "This is a major step forward in the growth of European Cargo. We have positioned our airline to provide our valued freight customers with a reliable air bridge to meet the increasing demand for air freight.
“The investment by Priority 1 into ECL will help us continue to build a sustainable, successful and profitable business following one of the most difficult periods in aviation history due to the Covid pandemic.”
Capital for the ECL investment was provided by funds managed by Blackrock Financial Management Inc, which recently provided Priority 1 with a senior debt facility to refinance existing debt and grow its aviation platform.
NatAlliance Securities acted as advisor to Priority 1 Logistics Holdings for both the senior debt capital raise and its investment in ECL.
Douglas Brennan, executive chair of Priority 1, added: "Expanding Priority 1's business into the cargo market represents a very exciting opportunity given the outsized demand for reliable air freighters due to strong trends in the marketplace, including the growing importance of e-commerce and reliable delivery of PPE to the world at large.
"Paul Stoddart and his skilled team at ECL have built enormous aviation capabilities and, together, we will help fuel the growth of ECL to build a powerful global cargo operator."
Like this story? Why not sign up to get the latest South West business news straight to your inbox
