Wheels Up Announces Divestiture of Non-Core Services Businesses

Wheels Up (NYSE:UP) has announced the sale of three non-core services businesses - Baines Simmons, Kenyon International Emergency Services, and Redline Assured Security - for $20 million before transaction expenses.

Rhea-AI Summary

Wheels Up (NYSE:UP) has announced the sale of three non-core services businesses - Baines Simmons, Kenyon International Emergency Services, and Redline Assured Security - for $20 million before transaction expenses. The company plans to reinvest the proceeds into its fleet modernization strategy and general corporate purposes.

This divestiture aligns with Wheels Up's strategic initiatives, including recently announced cost efficiency measures expected to generate $50 million in savings. CEO George Mattson emphasized that this move is part of their broader strategy to enhance operational focus, strengthen the balance sheet, and achieve sustainable profitability.

Positive

• Sale of non-core businesses generates $20 million in proceeds
• Expected cost efficiency initiatives to drive $50 million in savings
• Strengthening of balance sheet through strategic divestiture
• Strategic focus on core business and fleet modernization

Negative

• Transaction-related expenses will reduce net proceeds from sale
• Reduction in business diversification through divestiture

Argus Aug 21 session

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News Market Reaction – UP

On Aug 21, the first trading day after this news, UP closed 1.00% above the previous close.

Data tracked by StockTitan Argus for the Aug 21 session.

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Continued streamlining of business operations to further company's profitability goals

ATLANTA, Aug. 20, 2025 /PRNewswire/ -- Wheels Up Experience Inc. (NYSE: UP) today announced that it has sold three non-core services businesses – Baines Simmons, Kenyon International Emergency Services and Redline Assured Security – to an unrelated third party for approximately $20 million in proceeds before transaction-related expenses. Wheels Up expects to reinvest the net proceeds from the sale to further its ongoing 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 George Mattson, Chief Executive Officer. "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."

The sale of these non-core services businesses complements continued efforts to streamline Wheels Up's business, drive operational performance and execute on the company's fleet simplification and modernization strategy.

About Wheels Up
Wheels Up is a leading provider of on-demand private aviation in the U.S. with a large, diverse fleet and a global network of safety-vetted charter operators, all committed to safety and service. Customers access charter and membership programs and commercial travel benefits through a strategic partnership with Delta Air Lines. Wheels Up also provides cargo services to a range of clients, including individuals and government organizations. With the Wheels Up app and website, members can easily search, book, and fly.

For more information, visit www.wheelsup.com.

Cautionary Note Regarding Forward-Looking Statements
This press release contains certain "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside of the control of Wheels Up Experience Inc. ("Wheels Up"). These forward-looking statements include, but are not limited to, statements regarding the potential impacts of Wheels Up's cost reduction, operational efficiency and productivity initiatives and the divestiture of non-core businesses described in this press release on its business, financial condition and results of operations, including timing and magnitude. The words "anticipate," "continue," "could," "expect," "plan," "potential," "should," "would," "pursue" and similar expressions, may identify forward-looking statements, but the absence of these words does not mean that statement is not forward-looking. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in Wheels Up's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the U.S. Securities and Exchange Commission ("SEC") on March 11, 2025 and Wheels Up's other filings with the SEC from time to time. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, Wheels Up does not intend to update any of these forward-looking statements after the date of this press release.

Investors:
ir@wheelsup.com

Media:
press@wheelsup.com

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SOURCE Wheels Up

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What businesses did Wheels Up (NYSE:UP) sell in August 2025?

Wheels Up sold three non-core services businesses: Baines Simmons, Kenyon International Emergency Services, and Redline Assured Security for approximately $20 million before transaction expenses.

How much cost savings is Wheels Up expecting from its recent initiatives?

Wheels Up announced initiatives expected to drive approximately $50 million in cost efficiencies.

How will Wheels Up use the proceeds from the business sale?

Wheels Up plans to reinvest the net proceeds into their fleet modernization strategy and for general corporate purposes.

What is the strategic rationale behind Wheels Up's business divestiture?

The divestiture aims to sharpen strategic focus, invest in product and fleet operations, strengthen the balance sheet, and support the company's path to sustained, profitable growth.

Who is the current CEO of Wheels Up (NYSE:UP)?

George Mattson is the Chief Executive Officer of Wheels Up.