- Acquisition provides a platform for Exchange to enter rotary-wing
aviation market -
WINNIPEG, Jan. 12, 2012 /CNW/ - Exchange Income Corporation (TSX: EIF)
("Exchange" or the "Corporation"), announced today that it has signed a
letter of intent to acquire the operations and assets of Custom
Helicopters Ltd., a privately-owned provider of helicopter-based
aviation services in Manitoba and Nunavut.
The acquisition is valued at $29 million, and will be paid through a
combination of cash and the issuance of the Corporation's common
shares. The acquisition is expected to be immediately accretive to
Exchange's earnings per share and free cash flow per share. Pending
final due diligence and satisfaction of typical conditions, including
regulatory approval, the transaction is expected to close in the first
quarter of 2012.
"We believe that market conditions are favorable for us to begin to
deploy some of the more than $200 million we have available to support
our disciplined acquisition strategy," stated Mr. Mike Pyle, President
and CEO of Exchange Income Corporation. "Custom Helicopters represents
a strategic acquisition as it allows us to enter a new segment of the
aviation market, one with strong and sustainable margins. Consistent
with our business model, Custom's senior management will be retained
through long-term services contracts. We look forward to welcoming
Custom Helicopters into Exchange's growing Aviation segment."
Jim Hawes, Founder and President of Custom Helicopters Ltd., stated, "We
look forward to enhancing the business opportunities of Custom
Helicopters with Exchange's financial resources and through operational
synergies with Exchange's other aviation companies. We look forward to
tapping into Exchange's strong relationships with northern and First
Nation communities, which will help Custom Helicopters attain new
levels of success."
The purchase price is $29 million.
15% of the purchase price, approximately $4.3 million will be paid
through the issuance of Exchange Income Corporation common shares. The
balance of the purchase price, approximately $24.7 million, will be
paid in cash.
Custom Helicopters was founded in 1977 and has a fleet of 24 helicopters
providing service in Manitoba and Nunavut.
Custom Helicopters has operating bases in Winnipeg, Thompson, Gilliam
and Garden Hill, in Manitoba and Rankin Inlet in Nunavut.
Custom Helicopters operates light, intermediate and medium category
helicopters on long- and short-term contracts to government agencies,
utilities, First Nations groups, mining companies and other customers.
The purchase price is based on an EBITDA multiple that falls within the
range of prior Exchange acquisitions.
About Exchange Income Corporation
Exchange Income Corporation is a diversified acquisition-oriented
company, focused on opportunities in the industrial products and
transportation sectors which are ideally suited for public markets
except for their size. The strategy of the Corporation is to invest in
profitable, well-established companies with strong cash flows operating
in niche markets in Canada and/or the United States.
The Corporation is currently operating in two niche business segments:
aviation and specialty manufacturing. The aviation segment consists of
the operations by Perimeter Aviation, Keewatin Air, Calm Air
International and Bearskin Lake Air Service and the specialty
manufacturing segment consists of the operations by Jasper Tank,
Overlanders Manufacturing, Water Blast Manufacturing, Stainless
Fabrication and WesTower Communications. For more information on
Exchange Income Corporation, please visit www.exchangeincomecorp.ca.
Additional information relating to the Corporation, including all public
filings, is available on SEDAR (www.sedar.com).
SOURCE Exchange Income Corporation
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