KINSTON – The Kinston-based private jet company flyExclusive, which announced another expansion in Eastern North Carolina last week, will complete a business combination and become a publicly-traded company.
The deal will value the company at $600 million, according to the details release by the company on Monday.
Since the firm’s founding, it has grown to become one of the top five private jet companies in the nation, ranking fourth for all of 2021.
The firm will combine with EG Acquisition Corp. (NYSE: EGGF), a Special Purpose Acquisition Company (SPAC) that is sponsored by EnTrust Global and GMF Capital, according to the statement.
Under the terms of the deal, the company will bring in $85 million in cash from “certain sovereign wealth and U.S. institutional investors” through the purchase of convertible notes valued at $10 per share, effective once the deal is consummated.
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Expanding in NC
Last week, the company held a ribbon-cutting ceremony to open a new facility at its Kinston headquarters location. That new facility, known as Hanger 4 will house a rapidly-growing division of the company.
At the event last week, flyExclusive CEO Jim Segrave noted that the firm’s growth rate was 54% and highlighted the company’s position in the sector. Part of that growth is led by the firm’s 94% retention rate for its membership service, and growth among the firm’s other lines of business as well.
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Recent growth, with more expected
According to today’s statement, the company anticipates 2022 revenues of at least $360 million. For 2023, the firm projects revenues of more than $522 million.
In addition to the $85 million from investors via convertible note, the deal includes $225 million of cash from the special purpose acquisition company, which will be held in trust according to the statement.
“Proceeds will allow flyExclusive to continue its growth, better serve customers and execute its strategic plan to become the nation’s first fully vertically integrated private aviation company,” the statement reads.
Proceeds are expected to be “primarily used by flyExclusive for the acquisition of additional aircraft and for related expenses,” the statement notes.
Segrave, also the company’s founder, will lead the combined company following deal consummation.
