9th Nov 2007 07:01
BBA Aviation PLC09 November 2007 BBA AVIATION PLC 9 November 2007 ACQUISITION OF ADDITIONAL FBO LOCATIONS IN USA AND SIGNIFICANT NEW CONTRACT WINS IN ASIG AND ONTIC BBA Aviation plc today announces the acquisition of additional locations for itsSignature network in the USA together with significant new contract wins in ASIGand Ontic. Acquisition of Regent Aviation BBA Aviation has expanded its Signature network in the USA with the acquisitionof Regent Aviation based in St. Paul Minnesota for $50 million. Regent Aviationhas operations at St. Paul Downtown Airport (STP) and Rochester InternationalAirport (RST) in Rochester Minnesota. Both locations provide complete businessand general aviation fuelling, ground handling and hangar storage services.Regent (STP) is the primary general aviation reliever airport for theMinneapolis / St. Paul metropolitan area. In the last 12 months Regent had salesof circa $23 million and it is anticipated that the acquisition will be earningsenhancing in the first full year of operation. Following this acquisition BBAAviation's network of Signature locations now totals 55 in the USA and 92worldwide. ASIG contract at JFK ASIG has recently been awarded a seven year contract to provide full groundhandling services to all 16 airlines operating at JFK International Airport'sTerminal One. JFK's Terminal One is managed by Terminal One Group Association(TOGA), which is comprised of four of the world's leading airlines: Air France,Japan Airlines, Korean Air and Lufthansa. ASIG will handle over 10,000 flightsand 4 million passengers annually. Operations are scheduled to commence on 1February 2008 and the contract is expected to generate approximately $150million in revenue over its seven year term. Ontic contract with Goodrich Ontic has secured a major new contract with Goodrich Corporation's Landing Geardivision. Under the agreement Ontic will be licensed to manufacture and supporta number of landing gear products for military applications. The transfer of theproducts to Ontic is expected to be completed by the summer of 2008 and in afull year should generate sales in excess of $10 million. Commenting, Simon Pryce, BBA Aviation Chief Executive said: "Regent Aviation represents another key addition to Signature Flight Support'sindustry leading network of high quality FBO locations, consistent with ourfocus on airports serving growing metropolitan markets. In the current year wehave now added eight new locations and have other opportunities in the pipeline. "ASIG's contract at JFK will significantly increase the scope of our operationsat the airport and is in line with our strategy of selectively and profitablybuilding scale on airports where we have existing operations. "Ontic's contract with Goodrich is further evidence that support of older,non-core products under licence is a value creative solution for OEMs and Ontichas unique experience and expertise in fulfilling this need. We are working on anumber of further opportunities and would expect to see continued good growth inthis small but increasingly important area of our business." 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 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 business. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SIG.L