Flexjet Agrees to Terminate Business Combination with Horizon Acquisition Corporation II

Rhea-AI Summary

Flexjet announced the termination of its business combination agreement with Horizon Acquisition Corporation II (HZON), meaning it will remain a private entity. This decision is intended to protect the interests of stakeholders while maintaining ongoing growth initiatives. Flexjet aims to enhance its fleet with 37 aircraft deliveries in 2023, expanding its total to over 270 aircraft. Additionally, the company plans to strengthen its infrastructure with new maintenance facilities and private jet terminals. Hiring plans include bringing on approximately 1,400 new employees this year. Flexjet continues to show strong financial performance, exceeding prior financial targets and generating substantial cash flow, which could allow access to public markets in the future.

Positive

• Terminated SPAC deal allows Flexjet to remain private and focus on growth initiatives.
• Plans to add 37 aircraft in 2023, increasing fleet to over 270.
• Expansion of infrastructure, including private jet terminals and a new operations center.
• Hiring 1,400 additional employees, including pilots and maintenance technicians.
• Exceeded previous financial targets, ensuring strong cash flow.

Negative

• None.

• Flexjet’s Strong Financial Performance Will Allow for Continued Opportunistic Acquisitions, As Well As Strategic Growth in Infrastructure, Fleet, and Geographic Expansion Without the Need for Public Capital.

CLEVELAND--(BUSINESS WIRE)-- Flexjet, Inc., a global leader in subscription-based private aviation today announced that it has agreed to terminate its previously announced business combination agreement with Horizon Acquisition Corporation II (“Horizon”) (NYSE AMERICAN: HZON), a publicly traded special purpose acquisition company, that would have resulted in Flexjet becoming a publicly listed company. As a result of the termination, Flexjet will remain a private company.

“Because we have been dedicated stewards of our capital, there will be no impact on the growth initiatives we have launched during the past several years, which remain full steam ahead,” said Flexjet Chairman Kenn Ricci. “We believe that the decision to terminate at this time is in the best interests of our aircraft owners, employees, and other stakeholders.”

Todd Boehly, Chairman and CEO of Eldridge and Chairman, CEO, and CFO of Horizon said, “We have enjoyed and will continue our long partnership with Flexjet’s management team and respect their decision. We are glad that Flexjet and Horizon were able to agree to the termination in a manner that is fair.”

Flexjet will remain opportunistic with respect to all capital markets and available opportunities moving forward. Added Ricci, “Flexjet and our other branded storefronts are highly sought-after and trusted brands with 40 years of history in the aviation sector. In 2022, we outperformed the financial targets provided at the start of the SPAC transaction and continue to deliver significant cash flows and compelling year-over-year growth. Our position of strength gives us the flexibility to access the public markets at the appropriate time.”

In 2023, Flexjet’s plan for growth includes:

• Taking deliveries of aircraft, with an additional 37 expected this year, bringing the fleet to more than 270 aircraft by year-end (excluding helicopters). By the end of 2023, Flexjet will have added nearly 88 aircraft since Q1 2021.
• Bolstering an un-replicable global infrastructure, including additional private jet terminals, the largest in-house maintenance network in all of private aviation, maintenance facilities and a new world-class Cleveland headquarters, which will feature a state-of-the-art operations and control center.
• Continued acquisitions of opportunity, such as the recent acquisition of Constant Aviation.
• Further expansion of the industry-first helicopter offering now operating in Europe and in the U.S. Northeast, South Florida, and London with Sikorsky S-76.
• Hiring across the organization, including planned hiring of 388 additional flight crews and 338 aircraft maintenance technicians in 2023. In total, Flexjet is expected to hire an additional 1,400 employees.

“Changing course mid-stream is not the easiest path, but I have always respected our team for having the discipline to do just that,” added Ricci. “We will remain nimble and alter course if necessary to ensure we are always doing what is truly in the best interest of our business. Nobody is better positioned to meet the needs of an expanding global private aviation market as is Flexjet.”

About Flexjet

Flexjet, Inc., a global leader in subscription-based private aviation, first entered the fractional jet ownership market in 1995. Flexjet offers fractional jet ownership and leasing and is the first in the world to be recognized as achieving the Air Charter Safety Foundation’s Industry Audit Standard, is the first and only company to be honored with 24 FAA Diamond Awards for Excellence, upholds an ARG/US Platinum Safety Rating, a 4AIR Bronze Sustainable Rating and is IS-BAO compliant at Level 2. Red Label by Flexjet, a market differentiator, which features the most modern fleet in the industry, flight crews dedicated to a single aircraft and the LXi Cabin Collection of interiors. To date there are more than 40 different interior designs across its fleet, which includes the Embraer Phenom 300 and Praetor 500, Bombardier Challenger 350, the Gulfstream G450 and G650. Flexjet’s European fleet includes the Embraer Praetor 600 and the Gulfstream G650. Flexjet’s helicopter division sells fractional, lease, and on-demand charter access to its fleet of owned, operated and maintained Sikorsky S-76 helicopters which boast 55,000 hours of safe flying certified by Wyvern and ARG/US and serving locations throughout the northeastern United States, United Kingdom, and southern Florida. Flexjet is a member of the Directional Aviation family of companies. For more details on innovative programs and flexible offerings, visit www.flexjet.com or follow us on Instagram @FlexjetInc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230411005937/en/

Susan Ruiz Patton

Flexjet Head of External Communications

216-333-9526 (mobile)

Susan.Ruiz.Patton@flexjet.com

Source: Flexjet, Inc.

FAQ

What does the termination of the agreement with Horizon Acquisition Corporation II (HZON) mean for Flexjet?

Flexjet will remain a private company and continue its current growth initiatives without the need for public capital.

What are Flexjet's plans for growth in 2023 after terminating the SPAC deal?

Flexjet plans to add 37 aircraft, expand infrastructure, and hire approximately 1,400 new employees.

How many aircraft does Flexjet expect to operate by the end of 2023?

Flexjet expects to operate over 270 aircraft by the end of 2023.

How did Flexjet's financial performance impact its decision to terminate the SPAC deal with HZON?

Flexjet's strong financial performance and exceeding financial targets provided the flexibility to remain private and continue growth.

What is the significance of Flexjet's expansion plans in the private aviation market?

The expansion in aircraft, maintenance facilities, and hiring is aimed at meeting the growing demands in the global private aviation market.