Route Development
ICG Acquires UK Regional Airports in 200 Million Pound Aviation Deal
ICG invests £200 million to acquire Exeter, Bournemouth, and Norwich airports, signaling confidence in UK regional aviation recovery.
The UK regional Airports sector is undergoing a significant transformation with the recent announcement that Intermediate Capital Group (ICG) is set to acquire three strategic regional airports, Exeter, Bournemouth, and Norwich, in a deal valued at approximately £200 million. This acquisition, expected to be finalized by the end of August 2025, marks ICG’s first investment in the aviation sector and signals a broader trend of institutional capital flowing into transport infrastructure.
ICG’s move comes at a time when the aviation industry is emerging from the severe impacts of the COVID-19 pandemic. The three airports collectively serve around 2 million passengers annually and have demonstrated varied recovery trajectories. This Acquisitions not only reflects the growing confidence in the regional aviation market but also underscores the strategic importance of regional airports in enhancing economic connectivity across the UK.
The £200 million deal involves the acquisition of the airports from the Rigby Group, a diversified conglomerate that has owned the assets since 2013. The transaction also includes two Private-Jets bases at Liverpool and Birmingham airports, adding operational diversity to the portfolio. The deal is structured with approximately £100 million in debt financing, reflecting a balanced approach to capital structuring by ICG.
Financially, the airports generated a combined EBITDA of about £20 million in the most recent fiscal year. Bournemouth Airport alone contributed over half of this figure, highlighting its role as the financial anchor of the portfolio. The valuation implies a 10x EBITDA multiple, which is conservative compared to recent UK airport transactions that have seen multiples of over 20x EBITDA.
ICG has been advised by Gleacher Shacklock, while Rothschild acted on behalf of the seller. The transaction aligns with ICG’s infrastructure investment strategy, which focuses on assets offering stable cash flows and long-term growth opportunities. It also reflects the firm’s intent to establish a significant presence in UK aviation infrastructure rather than a one-off investment.
ICG Infrastructure, the firm’s dedicated infrastructure arm, has historically invested in renewable energy and digital infrastructure across Europe. Led by Guillaume d’Engremont, the team has now expanded its thematic focus to include mobility infrastructure, where regional airports play a pivotal role in economic development and connectivity.
The acquisition is funded through ICG’s second infrastructure fund, which recently hit its €2 billion target. This capital pool provides the financial flexibility required to support the operational needs and growth potential of the newly acquired airport assets.
ICG’s entry into aviation infrastructure is timely. Regional airports, unlike larger hubs, are beginning to show strong recovery trends and offer less competition from alternative transport modes. Their essential role in local economies makes them attractive for infrastructure investors seeking long-term, resilient returns. Bournemouth Airport stands out as the most robust asset in the portfolio. It has surpassed pre-pandemic passenger levels by 20%, serving nearly 1 million passengers annually. The airport has strong Airlines partnerships with Ryanair and TUI and is expanding its cargo operations through the Cargo First initiative, leveraging its 24/7 operational license.
Exeter Airport, once the hub for the now-defunct Flybe, handled 435,000 passengers in its latest reporting period, about 54% of its 2019 levels. The airport is showing signs of recovery, bolstered by TUI Airways’ decision to base a second aircraft there and KLM’s daily service to Amsterdam, which connects passengers to global destinations.
Norwich Airport, serving 353,000 passengers annually, is still operating at about 70% of its pre-pandemic capacity. However, its geographic monopoly in East Anglia and recent route additions from Ryanair and TUI suggest a path toward recovery and growth.
“Bournemouth Airport’s 20% growth over pre-pandemic levels demonstrates both market resilience and operational excellence.” – Aviation Analyst Report
Exeter Airport has a storied history dating back to 1937. Initially operated from a tented terminal, it became RAF Station Exeter during World War II before returning to civilian use in 1947. It was publicly owned by Devon County Council until 2007, when it was sold to Regional and City Airports, a Balfour Beatty-led consortium, for £60 million.
Under private ownership, the airport saw infrastructure upgrades and passenger growth, peaking at over 1 million annual passengers in 2007. In 2013, Rigby Group acquired the airport via its Patriot Aerospace division. The group maintained operational stability through the Flybe collapse and COVID-19 pandemic but ultimately decided to divest in 2024 to focus on core business areas.
This transition to ICG marks the latest chapter in the airport’s evolution, reflecting broader shifts in infrastructure ownership from public to institutional capital, driven by the need for modernization and investment in regional connectivity.
The ICG deal is part of a broader trend of increased Market-Analysis activity in the UK airport sector. Investors are drawn to the sector’s recovery potential, essential infrastructure status, and long-term demand drivers. Recent deals include AviAlliance’s £1.55 billion acquisition of AGS Airports and Vinci’s majority stake purchase in Edinburgh Airport.
These transactions highlight the appetite among institutional Investments, including sovereign wealth funds and pension funds, for airport assets. Factors such as limited competition, capacity constraints at major hubs, and evolving passenger preferences are making regional airports attractive investment targets. The strategic value of regional airports lies in their ability to offer shorter travel times, lower congestion, and improved passenger experience. These advantages are increasingly important in a post-pandemic world where travelers prioritize convenience and safety.
ICG’s acquisition of Exeter, Bournemouth, and Norwich airports is a strategic entry into the UK aviation sector that aligns with the firm’s infrastructure investment goals. The deal provides immediate cash flow through Bournemouth’s strong performance and offers growth potential in Exeter and Norwich as they continue to recover.
More broadly, the transaction reflects institutional confidence in the resilience and long-term viability of regional airports. As the sector continues to rebound, ICG’s investment positions it as a key player in shaping the future of UK regional aviation infrastructure.
What airports are included in the ICG acquisition? Who previously owned these airports? How much is the deal worth? Why is ICG investing in airports now? What is the expected closing date for the deal?
ICG’s £200 Million Acquisition of UK Regional Airports: A Strategic Investment in Post-Pandemic Aviation Recovery
The Transaction Details and Strategic Framework
ICG’s Strategic Expansion into Aviation Infrastructure
The Airport Portfolio: Exeter, Bournemouth, and Norwich
Historical Context and Previous Ownership Transitions
Market Dynamics and UK Airport M&A Activity
Conclusion
FAQ
Exeter, Bournemouth, and Norwich airports, along with two private jet bases at Liverpool and Birmingham.
The Rigby Group, which acquired them in 2013 through its Patriot Aerospace division.
The total transaction value is approximately £200 million.
ICG sees regional airports as resilient infrastructure assets with strong recovery potential and long-term growth opportunities.
The deal is anticipated to close by the end of August 2025.Sources
Photo Credit: Sky News