15th November 2000
BBA GROUP PLC Acquisition of ASIG for $152 million (£106.2 million)
BBA Group PLC announces that it has agreed to acquire Ranger Aerospace Corporation, the parent company of ASIG (Aircraft Service International Group Inc), for a consideration of $152million (£106.2 million) on a debt free basis. The consideration is to be satisfied in cash out of BBA's existing resources. The transaction will be completed once regulatory approvals are received.
ASIG, based in Florida, has established itself as a market leader in commercial aviation services. ASIG offers a full range of commercial aviation services including ground and cargo handling and fuelling from 50 locations in North America and the Caribbean. ASIG also has a significant presence in Europe operating at eight airports, including Heathrow, Gatwick, Stansted and Munich.
The acquisition represents a further broadening of BBA Aviation's range of services as well as the geographic expansion of BBA's network of bases in both the US and Europe.
Following the acquisition, BBA Aviation annual sales to commercial customers will be approximately £300 million. BBA Aviation will integrate ASIG into its existing operations, and believes there are opportunities to enhance its overall profitability.
For the year ended 31 March 2000, ASIG generated turnover and operating profit before depreciation, amortisation and non-recurring costs of $141 million and $14.7 million respectively. Unaudited sales for the six months to September 2000 were $79 million. Net assets at completion will be approximately $55 million.
Commenting on the acquisition, Roy McGlone, BBA Group PLC Deputy Chief Executive, said:
"This exciting move represents an excellent fit with our strategy of expanding our range of aviation services and building our network on a truly global basis.
"The acquisition of ASIG will greatly enhance BBA's position in commercial aviation services, building on our current position as the world's largest business aviation services provider. ASIG will enable BBA to capitalise on the current trend of greater outsourcing of services by commercial and regional airlines and will allow BBA to offer its growing basket of both commercial and corporate aviation services to new customers through a broader network."
Note: amounts denominated in US dollars have been converted using an exchange rate of £1:US$1.43, the rate ruling at the close of business on 14th November 2000.
ENQUIRIES:
Roy McGlone, Deputy Chief Executive, BBA Group PLC, 020 7842 4900
Susan Gilchrist/Nigel Prideaux, Brunswick, 020 7404 5959
2004 Preliminary Results Presentation, 23rd February 2005