22nd Feb 2008 07:24
BBA Aviation PLC22 February 2008 22 February 2008 ACQUISITION OF HAWKER BEECHCRAFT'S LINE SERVICE OPERATIONS FOR $128.5M BBA Aviation today announces that it has agreed to acquire the assets of HawkerBeechcraft Services Inc's Line Service Operations for a cash consideration of$128.5M on a debt and cash free basis. The acquisition consists of sevengeographically diverse Fixed Base Operations (FBOs) in strategically importantgrowth markets in the USA. Each location is an important corporate aircraftdestination and the assets represent a good mix of major business aviation,commercial and key reliever airports. Hawker Beechcraft will retain itsfactory-owned Hawker Beechcraft Services maintenance and customer supportfacilities co-located at these locations. Hawker Beechcraft's operations inLittle Rock, Arkansas, Chester, England, UK, and Toluca, Mexico will not beaffected. In 2007 Hawker Beechcraft's Line Service Operations had sales of $73M, EBITDAmargins of 12% and gross assets of approximately $16M. It is expected that theacquisition will be immediately earnings enhancing and returns should be inexcess of BBA Aviation's cost of capital by 2010. Hawker Beechcraft is divestingits Line Service Operations in order to focus on its maintenance repair andoverhaul business. The Line Service Operations will benefit from being part of afocussed FBO services group. Hawker Beechcraft's Line Service Operations bases included in the transactionare located at Van Nuys, California; Tampa, Florida; Houston, Texas; SanAntonio, Texas; Indianapolis, Indiana; Atlanta, Georgia; and Wichita, Kansas.The sites have an average lease term of 15 years. The bases are highly complementary to Signature in terms of location, servicereputation and quality of facilities. The acquisition will significantlystrengthen Signature's network and provide an opportunity for real valuecreation through benefits associated with network fuel volume, price, cost andreal estate, which are expected to be fully realised by 2010 with limitedinvestment. Closing of the deal is expected in May 2008 and is subject to Hart-Scott-Rodinoand other third party approvals. Commenting on the acquisition, Simon Pryce, Group Chief Executive, said: 'I am delighted that we have been successful in securing these seven highquality locations which are so complementary to our existing facilities. Thereare excellent opportunities for performance improvement through incorporatingthese assets into our Signature network and the potential benefits for customersand employees are tangible and significant. This is another important step inextending Signature's network, further strengthening our position as the world'sleading provider of airport services for business and general aviation'. Enquiries BBA Aviation plc 020 7514 3999Simon Pryce, Group Chief ExecutiveAndrew Wood, Group Finance Director Brunswick Group 020 7404 5959Michael HarrisonKate Miller Notes to Editors BBA Aviation BBA Aviation is a world leader in aviation services focusing on Aviation FlightSupport and Aftermarket Services and Systems. BBA Aviation provides flightsupport services for corporate and commercial aviation customers as well asmaintenance, repair, overhaul and spare parts for aircraft engines. It alsosupplies aviation components, landing gear and hydraulic systems. These areattractive niches in a $250 billion market with clear barriers to entry, whereBBA has leading positions, well-known and reputable brands and a proven trackrecord of organic and acquisition-led growth. BBA Aviation was formerly part of BBA Group, but following the demerger ofFiberweb, in November 2006 it became a stand-alone aviation services and systemssupport business operating mainly but not exclusively in the Business andGeneral Aviation market. Hawker Beechcraft Hawker Beechcraft is a leading original equipment manufacturer specialising inthe design, production and aftermarket support of various corporate, lightairline and military training aircraft. Hawker Beechcraft was formerly part ofthe Raytheon Corporation prior to its sale to private equity investors, GSCapital Partners and Onex, in March 2006. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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