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https://www.ainonline.com/aviation-news ... 60-million#
https://www.ainonline.com/aviation-news ... 60-million#Bristow Acquiring Columbia for $560 Million
- November 9, 2018, 11:47 AM
Global helicopter services company Bristow Group
is acquiring heavy lift specialist Columbia Helicopters
in a debt and stock deal worth $560 million in what it called “a transformative transaction.”
Bristow made the announcement this morning
concurrent with releasing its financial results for the quarter ending September 30,
posting a $144 million loss on revenues of $334.7 million.
The loss includes a one-time impairment charge of $117.2 million against its Airbus Helicopters H225 fleet and
inventory and Eastern Airways assets.
Bristow reported that it had $308 million in cash on hand at the end of the quarter.
As of last Friday that had diminished to $266 million.
For the 12 months ended September 30,
Columbia posted revenues of $281 million and
earnings before interest taxes and depreciation (EBITDA) of $117 million.
Columbia currently operates 21 tandem rotor heavy lift Vertol 107 and Chinook CH-234/CH-47D aircraft.
Perhaps more importantly for Bristow,
the company also has full MRO and certification capabilities and lucrative military contracts.
“Meaningful revenue opportunities abound,”
from the combined companies as well as tax benefits,
said Bristow CEO Jonathan Baliff.
Bristow said Columbia would remain an “unrestricted subsidiary”
keeping its name, management, board, and livery.
Baliff, who has led the company since 2010,
said his primary focus would be on smoothly
integrating Columbia into Bristow
before he retires from Bristow immediately after the transaction closes,
expected by December 31.
He will be replaced on an interim basis by Thomas Amonett, Bristow’s vice chairman.
Columbia was founded by Wes Lematta with a single Hiller 12B in 1957. He died in 2009.
On a quarterly conference call with analysts this morning,
Baliff said the company was in discussions with OEMs to terminate new aircraft deliveries,
had placed 10 owned aircraft up for sale,
had returned eight leased aircraft year to date
and had the ability to return 13 more.
However, Baliff noted recent increased oil and gas exploration activity and
drill rig increases in key markets
including West Africa, the Gulf of Mexico, the North Sea, and Brazil.
He also said that the company was continuing along its plan
to transform itself into an “industrial aviation services company”
less weighted to the fate of oil and gas.
By illustration, he said that oil and gas,
the company’s UK SAR contract,
and Columbia would each contribute
an approximate one-third share to the combined company’s EBITDA going forward.
https://www.verticalmag.com/news/bristo ... ster-deal/
is certainly worth a click!
The move,
announced as the offshore oil-and-gas specialist reported a $140-million net loss in its second quarter financial results,
was accompanied by the news that Baliff will retire from Bristow once the Columbia acquisition is complete.
Columbia, based in Aurora, Oregon,
was founded in 1957 by industry pioneer Wes Lematta,
and has seen global success by specializing in providing heavy lift services,
primarily to U.S. military and government customers,
with its fleet of 21 Vertol 107s and CH-234/CH-47D Chinooks.
It has 860 employees.
Bristow, founded just a few years earlier in 1953,
specializes in offshore transport for the oil-and-gas industry,
and has a fleet of 233 helicopters around the globe (including 119 large helicopters).
However, the Houston, Texas-based operator has endured
a difficult few years during what Baliff has called a “historic” downturn
for the wider oil-and-gas industry.
https://www.verticalmag.com/news/bristo ... ster-deal/
https://www.rotorandwing.com/2018/11/09 ... licopters/
For the fiscal year ending Sept. 30, Columbia had revenues of $281 million and an adjusted cash flow of about $117 million.
The company's operational fleet includes 11 Boeing Vertol 107s and 10 Chinook CH-234/CH-47Ds
that serve the defense, firefighting, onshore oil and gas, infrastructure and forestry sectors.
In addition, the company has 24 Boeing Vertol 107s and 13 CH-234/CH-47Ds in reserve.