Disposal of ASIG to John Menzies plc for $202m

16 SEPTEMBER 2016

Disposal of ASIG to John Menzies plc for $202 million

Following a number of approaches and subsequent formal review, BBA Aviation plc ("BBA Aviation", "the Group"), a market-leading provider of global aviation support and aftermarket services, announces that it has reached agreement with John Menzies plc ("Menzies") on the terms of the sale of ASIG, a leading commercial aviation services company, for $202 million in cash. Menzies is funding the acquisition through raising additional debt and equity and, in addition to customary approvals, the transaction will require the approval of its shareholders. As a result of this process, the disposal is expected to close around the end of 2016.

ASIG is the world's leading independent refueller, employing approximately 8,000 people, and providing ground, fuel and airport facility services to airlines, airports, oil companies and industry partners in the commercial aviation sector. It safely delivers flexible and comprehensive service solutions including refuelling, fuel farm management, ground handling, aircraft technical support services, facilities equipment maintenance and de-icing, with considerable technical expertise at more than 80 airports in North America, Central America, Europe and Asia.

ASIG's EBITDA for the twelve months to 31 December 2015 was $31.9 million and its underlying and statutory profit before tax were $20.3 million and $17.9 million respectively, while the value of the gross assets at 30 June 2016 was $255.6 million.

Financial effects of the transaction

Gross consideration of $202 million is anticipated to deliver approximately $160 million of net proceeds after tax, professional transaction fees, and other costs, which will be used to reduce Group borrowings. As part of the transaction, BBA Aviation will provide transitional services to Menzies for support services for a six month period following closing. After adjusting for costs of providing the transitional services, foreign exchange reserves write-off, and other charges, the transaction will realise a loss on disposal in the region of $15 million.

The Group will look to reduce the $20 million ongoing support costs previously allocated to ASIG by at least half during the 12 months following transition at a one-off cost of around $5 million.

Commenting on the announcement, Simon Pryce, BBA Aviation Group Chief Executive said:

"As part of our continuing emphasis on delivering long-term, sustainable value for shareholders, after receiving a number of approaches and going through a detailed process, we are pleased to announce the sale of ASIG to Menzies to create a focused and larger, broad based global supplier of commercial aviation services. This disposal further enhances BBA Aviation's focus as a high quality, strongly cash generative market leader in the provision of business and general aviation and legacy support services."

This announcement contains inside information.

Enquiries:

BBA Aviation plc

Mike Powell, Group Finance Director / Martha Walsh, Interim Head of Investor Relations

(020) 7514 3999

Tulchan Communications

David Allchurch / Doug Campbell

(020) 7353 4200

Information on BBA Aviation plc

BBA Aviation plc is a leading global aviation support and aftermarket services provider with market leading businesses and attractive growth opportunities, employing almost 15,000 people worldwide. BBA Aviation's Flight Support businesses (Signature Flight Support and ASIG) are focused on refuelling and ground handling of business and commercial aviation aircraft. Its Aftermarket Services businesses (Dallas Airmotive, H+S Aviation, International Turbine Service, Barrett Turbine Engine Company, International Governor Services and Ontic) are focused on the repair and overhaul of jet engines and the service of aerospace sub-systems and components. For more information, please visit www.bbaaviation.com