BBA Aviation PLC Regulatory Clearance (0036O)
February 03 2016 - 10:56AM
UK Regulatory
TIDMBBA
RNS Number : 0036O
BBA Aviation PLC
03 February 2016
3 February 2016
BBA Aviation obtains regulatory clearance for the acquisition of
Landmark Aviation
BBA Aviation plc, the leading global aviation support and
aftermarket services provider, announces that the Department of
Justice has now filed its antitrust lawsuit and proposed settlement
for clearance under the U.S. Hart-Scott-Rodino Act for the
acquisition of Landmark Aviation ("Landmark"). As a result,
completion of the Landmark acquisition is expected shortly.
Landmark is an integrated aviation service provider offering
end-to-end support services to Business and General Aviation
("B&GA") customers. After Signature Flight Support
("Signature"), Landmark is one of the largest fixed base operation
("FBO") networks in the world with 68 locations, of which 64 are in
North America and 4 are in Europe.
As outlined at the time of announcement of the Acquisition on 23
September 2015, the Board of BBA Aviation believes that acquiring
Landmark is transformational with the following benefits:
-- It is strategically compelling
-- A major expansion of Signature, already the world's largest FBO network
-- Brings Signature's operational excellence to Landmark's
portfolio and enhances its industry leading customer
proposition
-- Substantial cost synergies and tax benefits
-- Strong cash generation and rapid deleveraging profile
-- Expected to be EPS enhancing in 2017 and materially enhancing on a cash tax basis
-- Return on invested capital expected to exceed weighted average cost of capital in 2018
As anticipated, under the terms of the regulatory approval, the
Company is required to sell six FBOs at: Westchester County
Airport, New York; Washington Dulles International Airport,
Virginia; Scottsdale Airport, Arizona; Ted Stevens Anchorage
International Airport, Alaska; Jacqueline Cochran Regional Airport,
California; and part of the Landmark facilities at Fresno Yosemite
International Airport. These FBOs together contributed $16.1m of
EBITDA in 2014. The sale process for these FBOs is underway.
Taking in to account the full year effect of the Acquisition and
the associated disposals, the Board continues to believe that pro
forma leverage as at 31 December 2015 would have been approximately
3.5x net debt/EBITDA and lower than this on a covenant basis.
Leverage is expected to reduce towards the top end of BBA
Aviation's target range by the end of 2017.
Commenting on today's announcement, Simon Pryce, Chief Executive
of BBA Aviation, said:
"We are pleased with this positive result from the Department of
Justice review process and to have received approval to complete
the acquisition of Landmark Aviation, which materially enhances the
underlying quality, growth and value creation prospects of the
Group, and represents a major expansion of our market-leading
Signature FBO business."
For further information please contact:
BBA Aviation plc
+44 (0) 20 7514 3999
Mike Powell, Group Finance Director
Jemma Spalton, Head of Communications & Investor
Relations
Tulchan Communications
+44 (0) 20 7353 4200
David Allchurch
Martha Walsh
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. 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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