25th April 2003
BBA GROUP PLC ANNOUNCES ACQUISITION OF PREMIER TURBINES, INC., AND DISPOSAL OF LUTON ENGINEERING BUSINESS
BBA Group PLC today announced that its Dallas Airmotive subsidiary has acquired the assets of Premier Turbines, Inc., part of privately owned Sabreliner Corporation for a total consideration of $34.5m (£21.67m) on a debt free cash free basis.
Headquartered in Neosho, Missouri, Premier Turbines is a leading provider of turbine engine overhaul and repair services for both business aviation and military and government aircraft operators. The company is authorized by Honeywell to provide heavy maintenance service for the TFE731 series engine, one of the most widely used fanjet engines in the business aviation and fractional aircraft fleets. Worldwide, there are more than 10,000 TFE731 engines in service on over 30 different aircraft applications.
Premier Turbines also has a broad range of capabilities and experience in the support of Government-owned turbine engines and their accessories, including the General Electric T700 and Rolls-Royce T703 series engines, both widely-used in a variety of military helicopter applications.
The acquisition is expected to be earnings enhancing in the first year.
BBA also announces the disposal of the assets of its Luton Engineering Business to Gulfstream Aerospace Corporation. Signature Flight Support will continue to provide FBO support and related services at Luton. Importantly, as part of the sale, Gulfstream has entered a long-term lease agreement with Signature at Luton and will continue to provide maintenance services for a wide variety of business jet aircraft at the location.
The transaction mirrors our previous sale of the Signature Regional Maintenance Centers to Gulfstream in 2001, which has proved to be a success for Signature, Gulfstream and our customers.
Commenting on the transactions, Roy McGlone, BBA Group PLC Chief Executive said "This acquisition highlights BBA's commitment to expanding our capabilities in support of growing engine programs such as the TFE731. With the addition of Premier Turbines we have taken an important strategic step to broaden our services to business aviation and fractional aircraft customers as well as opening a new distribution channel to support military and government-owned engines.
"The disposal of the Engineering business at Luton Airport extends our business relationship with Gulfstream to Europe. The combination of Signature's industry leading flight support services and Gulfstream's award-winning maintenance expertise will further enhance Luton's position as one of Europe's leading airports for business aviation operators.
"These developments highlight BBA's continued commitment to grow our core businesses and are in line with the strategy we have set out to develop our balanced portfolio of aviation businesses."
Note: amounts denominated in US dollars have been converted using an exchange rate of £1:US$1.59, the rate ruling at the close of business on 24 April 2003.
ENQUIRIES:
Roy McGlone, Deputy Chief Executive, BBA Group PLC, 020 7514 3999
Andrew Wood, Group Finance Director, BBA Group PLC, 020 7404 5959
Kevin Byram, Brunswick, 020 7404 5959
2003 Interims Results Presentation, 2nd September 2003