Private firm ICG secures £200 million agreement for management of airports in Exeter and Bournemouth
ICG Acquires Bournemouth, Exeter, and Norwich Airports for £200 Million
In a significant move for the UK's regional aviation sector, private equity firm ICG is set to acquire Bournemouth, Exeter, and Norwich airports from the Rigby Group in a deal worth approximately £200 million. The transaction, scheduled to complete in August 2025, will mark a new chapter for these regional airports.
Background and Ownership
The three airports have been operated by Regional & City Airports (RCA), a subsidiary of the Rigby Group, a privately-owned conglomerate with diverse interests in various sectors, including hotels, software, and technology. Under the Rigby Group's stewardship, RCA experienced consistent growth, with passenger numbers surpassing 2 million and a 13% year-on-year increase, making RCA a successful regional aviation operator.
The acquisition by ICG signifies a strategic partnership aimed at building on this growth trajectory, signalling new investment and operational transformation.
Impact on Regional Aviation
ICG's primary objective is to accelerate RCA's growth by increasing airport, cargo, and executive jet center capacity. Sustainable aviation practices will also be a key focus, reflecting the wider industry's trend towards reducing environmental impacts.
The transaction is expected to catalyse further development in regional connectivity and economic activity tied to these airports, which play crucial roles in their local regions.
Notable Precedents
This deal comes amid a surge of activity involving Britain's major airports, as infrastructure investors seek to capitalise on a recovery in their valuations. For instance, Australia's Macquarie has recently taken a large stake in London City Airport.
It's also worth noting that Exeter airport was once the hub for Flybe, the regional carrier that collapsed following the pandemic.
In summary, the £200 million deal transfers ownership from the Rigby Group to ICG, positioning Regional & City Airports for a new growth phase with expanded operations and sustainability initiatives, maintaining the airports' importance in the UK's regional aviation sector. [Sources: 1, 2, 3, 4]
In the wake of the acquisition, it's possible to anticipate a potential shift in the financial landscape of the regional airports, as ICG plans to inject new investments for the growth of RCA. The acquisition could also signal a change in war strategy, with ICG targeting to transform operational activities at the airports, aiming for increased capacity and sustainable aviation practices.
