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?(Image from Wheels up Linkedin)Wheels Up announced on Wednesday that it sold three of its non-core services businesses to an unrelated third party.
The companies sold are Baines Simmons, Kenyon International Emergency Services and Redline Assured Security. Baines Simmons is an aviation safety consulting and training company for all sectors of aviation. Kenyon International Emergency Services provides disaster management services, family and humanitarian support, and crisis communications and regulatory compliance assistance. Redline Assured Security provides security training, consulting, products and solutions.Wheels Up states that it received a total of $20 million before transaction-related expenses. The net proceeds are planned to be reinvested in its fleet modernization strategy and for general corporate purposes.
"The divestiture of these non-core services businesses is the latest in a series of steps that Wheels Up has taken to sharpen our strategic focus; invest in our product, fleet and operations; and strengthen our balance sheet," said CEO George Mattson. "The sale, along with our recently announced initiatives estimated to drive approximately $50 million of cost efficiencies, is expected to create meaningful tailwinds on our path to sustained, profitable growth."
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Wheels up stated that the sale of its non-core services businesses are part of its plan to streamline its business and simplify its fleet while increasing operational performance and modernizing its strategy.