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Wheels Up Sells Non-Core Businesses for $20M, Aims to Boost Profitability
ByAinvest
Thursday, Aug 21, 2025 7:27 am ET1min read
Wheels Up has sold three non-core services businesses for $20 million, which will fund fleet modernization and general corporate purposes. The company aims to simplify its operations, enhance performance, and streamline business operations. The sale is part of a broader strategy to drive sustained, profitable growth, including cost-saving initiatives expected to generate $50 million in savings.
Wheels Up Experience Inc. (NYSE: UP) has sold three non-core services businesses—Baines Simmons, Kenyon International Emergency Services, and Redline Assured Security—to an independent third party for approximately $20 million in proceeds. The company plans to reinvest the net proceeds into its ongoing fleet modernization strategy and for general corporate purposes [1].The divestiture is part of Wheels Up's broader strategy to streamline operations, enhance performance, and drive sustained, profitable growth. The company aims to simplify its business operations and improve profitability by focusing on its core competencies [2].
George Mattson, CEO of Wheels Up, stated, "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" [1].
The sale complements Wheels Up's recently announced initiatives aimed at achieving approximately $50 million in cost efficiencies, further bolstering the company's efforts to streamline its business operations and improve performance [2].
Wheels Up provides on-demand private aviation services in the United States with a fleet that includes aircraft operated through a network of safety-vetted charter operators. The company offers charter and membership programs along with commercial travel benefits through its partnership with Delta Air Lines [2].
References:
[1] https://www.prnewswire.com/news-releases/wheels-up-announces-divestiture-of-non-core-services-businesses-302534899.html
[2] https://www.investing.com/news/company-news/wheels-up-divests-noncore-businesses-for-20-million-93CH-4203141
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