Monarch selects Greybull Capital as preferred bidder

Monarch selects Greybull Capital as preferred bidder

The board of Monarch Holdings has announced today that Greybull Capital has been selected as the preferred bidder to acquire Monarch from the group’s shareholders, principally the Mantegazza family.

Greybull is a family office with a focus on investing in private companies across a diversified range of industry sectors.

It backs incumbent management teams to support and invest into established businesses and brands and creates long-term sustainable and profitable businesses.

“It views an investment in Monarch as a long-term opportunity in a very strong brand with great potential in all of its markets, and intends to be supportive shareholders throughout Monarch’s next chapter,” explained a statement from Monarch Group.

Completion of a deal remains subject to the successful outcome of ongoing negotiations, whereupon Greybull intends to provide significant capital to Monarch in order to grow the Group and to capitalise on the long established and trusted brand name.

Conditional upon the successful conclusion of these negotiations with Monarch stakeholders, a transaction is expected to complete towards the end of October.

In August 2014, Monarch confirmed it was undergoing a strategic review with the objective of determining the optimal structure to take the company forward. 

The company saw a significant opportunity to build on the respected Monarch brand and distinctive customer offer, in order to create a focused and efficient scheduled European low-cost carrier.

Monarch has developed a clear strategy to evolve into a leading scheduled European low-cost airline.

Part of this strategy involves a major investment into its aircraft fleet. 

In July 2014, Monarch announced Boeing was the preferred bidder for its narrow-bodied fleet replacement, with 30 Boeing 737 MAX 8s for delivery from quarter two of 2018. 

At current list prices, this aircraft deal would be worth $3.1 billion.