HercDriver130

Saw an article the other day were Evergreen sold its Marana AZ Facility for an undisclosed amount of cash....... interesting.

longhauler

Evergreen Maintenance Center Inc. has been sold to Relativity Capital, bringing a new owner to Arizona's largest aircraft maintenance facility.
The center has about 20 million square feet of storage and maintenance space in Marana, north of Tucson. The companies did not release financial information about the deal.
EMC, a unit of Evergreen International Aviation, has run the facility for 32 years.
“We are extremely excited to have Relativity Capital invest in our future, especially given their expertise and long history investing in the aerospace sector,” said Mark Rosema, president of EMC. “We look forward to a long and prosperous relationship with the team at Relativity as we grow our maintenance and storage businesses.”
Relativity principal Brian Lee said EMC is well-positioned in an industry that continues to grow.
Relativity has offices in New York; Arlington, Va.; and Bloomington Hills, Mich. The private equity firm invests in aerospace, defense, industrial, health care and other fields.

jungle

There is a lot of history at that place: Pinal Airpark - Wikipedia, the free encyclopedia

EZRider

The most interesting question is why Evergreen sold it.

With a fleet of rather old aircraft like Evergreen, the hulls are usually not worth that much due to the high MX costs. We have aircraft in Marana all the time undergoing MX. It's always interesting to see what else is there when you take a plane out. Selling off a heavy MX facility is an interesting strategy for Evergreen.

Of course, for the right price, anything makes sense. As pilot's, we're kept out of the loop, naturally.

pilotgolfer

I think they needed to finance a new pump for the water slide at the park. They are still looking for more money to cover the cost.

myoface

Usually the kiss of death right there.

Green Giant

For whom, the airline or the EMC?

Vertroll

Brian Lee and some others from the investment firm have been on EMC's Board of Directors team for the last few years so this isn't some knee jerk reaction. Unsure of the strategy though.

HercDriver130

Well, I do know after a bit more research that Evergreens credit status had been downgraded to CCC ... I suspect they were/are raising cash to either pay off debt or finance something to purchase.

CCC is in the Junk Category... and according to S&P companies in a CCC rating are vulnerable.

I suspect the raising of cash may be a response to try and get their credit rating up as well.

Sniper

Possibly.

Of course, given the recent past, the ability of S&P to accurately rate anyone's credit is highly suspect, especially a private company that doesn't let you see their financials.

Any company that finances an indoor water park in McMinnville, OR is either flush with cash . . . or blowing it on, well, an indoor water park in McMinnville!