Helicopter Firms Bristow and Era Announce Merger
Jan 27, 2020 12:40PM ● By News Desk
HOUSTON, TX – Bristow Group Inc. (“Bristow”) and Era Group Inc. (NYSE:ERA) (“Era”) announced Friday that they entered into a definitive agreement to combine the two companies in an all-stock transaction, creating a financially stronger company with enhanced size and diversification.
The combined company, which will be named Bristow, will strengthen its global leadership position with significant operations throughout the Americas, Nigeria, Norway, the United Kingdom and Australia for offshore aviation transportation and search and rescue solutions. The new organization will offer a broader range of world-class, efficient solutions through enhanced fleet size and diversity, continuing to invest in new technology and safety features to meet the evolving needs of new and existing oil and gas customers and governmental agencies.
“We believe this merger will create substantial value for the stakeholders of both companies,” said Chris Bradshaw, President and CEO of Era. “The identified cost synergies are significant and, combined with the strong pro forma balance sheet and absence of capital commitments, support robust free cash flow generation. This merger achieves more efficient absorption of the significant fixed costs required to run an air carrier and better positions the combined company to manage industry challenges.”
“Bristow and Era share complementary cultures built on an unwavering commitment to safety and quality through experienced, well-trained trained pilots, mechanics, engineers and support staff,” said L. Don Miller, President and CEO of Bristow. “Merging these two companies will further build on that culture to create an even stronger, more integrated industry leader.”
Read the full release Here.
Photo Source Bristow Group l Linkedin
#####
Highly Compelling Strategic Rationale
Enhances Global Leadership with Significant Presence in Key Geographic Regions and End-Markets:
-Significant operations throughout the Americas, Nigeria, Norway, the United Kingdom and Australia
-Global leader in offshore oil and gas transportation, search and rescue and aircraft support services to government and civil organizations, with significant revenues and cash flow generated from government services contracts
Increases Fleet Size and Diversity:
-Combined fleet of more than 300 of the industry’s most modern aircraft with the latest generation of technology and safety features
-Creates the world’s largest operator of S92, AW189 and AW139 model helicopters
Combined fleet will be predominantly owned (>80%), with attractive lease rates on the balance of the fleet
Creates Financially Stronger Company:
-Expected to achieve pro forma annual revenues of approximately $1.5 billion and run-rate adjusted EBITDA of approximately $240 million
-Substantial and highly achievable cost synergies with an annualized saving of at least $35 million through the elimination of redundant corporate expenses and the realization of enhanced operational efficiencies
-Maintains a strong balance sheet (~2.5x net leverage), supported by a large combined cash balance (over $250 million expected at closing)
-$112.5 million upsized ABL facility, with a robust free cash flow profile to facilitate continued deleveraging and returns to shareholders
Read the full release Here.
Photo Source Bristow Group l Linkedin
#####
