BBA Aviation PLC Acquisition (0379B)

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RNS Number : 0379B

BBA Aviation PLC

18 September 2018

18 September 2018

BBA Aviation acquires Firstmark Corp

BBA Aviation (the "Group"), a market-leading provider of global aviation support and aftermarket services, is pleased to announce the acquisition of Firstmark Corp ("Firstmark"), an aerospace focused aftermarket service provider, for a consideration of $97m. This business will be part of Ontic, our Aftermarket Services business, under Gareth Hall's leadership.

Firstmark is a leading provider of highly engineered, proprietary components and subsystems for the aerospace and defence industries. The company employs over 70 people and has locations in Creedmoor, North Carolina and Plainview, New York and will expand Ontic's US footprint to the East Coast, closer to key OEM partners and customers. It will be highly complementary to Ontic's existing sites in Chatsworth, California, Cheltenham in the UK and Singapore.

The acquisition enhances Ontic's exposure to the commercial and military aerospace markets, providing access to a range of growth opportunities across various established strategic platforms, with a significant installed base, high utilisation rates and extended in-service lives.

The $97m consideration represents an expected year one EBITDA multiple of 11.1x before acquisition related expenses of $1.6m. Firstmark is expected to contribute revenue of around $27m in its first full year of ownership.

The acquisition is subject to certain governmental and regulatory approvals and is expected to complete late in 2018.

Mark Johnstone, BBA Aviation Chief Executive commented "We are pleased to have reached an agreement to acquire Firstmark. This acquisition fully supports the strategic growth of Ontic by expanding the portfolio of proprietary products on established civil and military aircraft platforms and adding footprint on the US East Coast."

Enquiries:

BBA Aviation plc

David Crook, Group Finance Director

Kate Moy, Head of Investor Relations and Communications

[phone]

Tulchan Communications

David Allchurch

[phone]

Information on BBA Aviation plc

BBA Aviation plc is a market leading, global aviation support and aftermarket services provider, primarily focused on servicing the Business and General Aviation (B&GA) market. We support our customers through three principal businesses: Signature Flight Support and Signature TECHNICAir(TM) which provide premium, full service flight and home base support including refuelling, ground handling and MRO services through the world's largest fixed base operation (FBO) network for B&GA users with around 200 locations covering key destinations in North America, Europe, South America, Caribbean, Africa and Asia. Ontic is a leading provider of high-quality equipment and cost-effective solutions for the continuing support of maturing and legacy aerospace platforms with locations in the USA, Europe and Asia. Engine Repair & Overhaul (ERO)/Global Engine Services is a leading independent engine service provider to global B&GA operators, the rotorcraft market and regional airline fleets with locations in the USA, Europe, South America, Asia and the Middle East.

On 1 March 2018 BBA Aviation announced that it was conducting a strategic review of the ERO business and, at the end of May 2018, management committed to a plan to sell substantially all of the business and the relevant assets and liabilities were classified as held for sale.

For more information, please visit www.bbaaviation.com

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September 18, 2018 02:00 ET (06:00 GMT)