Private aviation company Wheels Up is going public via a merger with special purpose acquisition company Aspirational Consumer Lifestyle.
Under the deal, Aspirational, which had an initial public offering in September, will combine with Wheels Up through stock and cash financing. The deal values Wheels Up at about $2.1 billion. Both Aspirational's and Wheels Up's boards of directors unanimously have approved the deal, and subject to shareholder and regulatory approval, the companies expect the transaction will close in the second quarter of this year.
Wheels Up will keep its current management team after the merger, and Aspirational chairman and CEO Ravi Thakran, a former group chairman of LVMH Asia, will join its board of directors. The combined company will be renamed Wheels Up Experience, Inc., according to a filing with the U.S. Securities and Exchange Commission.
Wheels Up, which last year combined with Delta Private Jets, also will have up to $750 million in cash on its balance sheet after the merger, which it said will fund operations and support new business initiatives. In a statement, Thakran said there are "many opportunities to leverage our experience and relationships to partner with other aspirational and luxury brands and to expand to international markets"
The merger will make Wheels Up the first private aviation company to be listed on the New York Stock Exchange, where it will have the symbol UP, according to the company.