12th August 2004
Acquisition Boosts BBA Growth Plans in Europe
BBA Group PLC today announced that its wholly owned Signature Flight Support subsidiary has agreed to acquire Execair, a fixed base operation (FBO) network, from John Menzies PLC, for £11.75m on a cash and debt free basis.
Execair provides passenger handling, flight planning and ground transportation services to business and general aviation customers at 10 airports - Glasgow, Edinburgh, Dublin, Birmingham, Cardiff, Inverness, Aberdeen, East Midlands, Charleroi and Bournemouth.
The acquisition builds BBAs position in a strategically important market. BBA is the world's largest operator of FBOs servicing business aircraft. This acquisition boosts its presence in the Pan European market, where it now has 14 FBOs, consolidating Signature's position as the market leader in the UK and establishes a presence in 5 capital cities in Europe. In North America, Signature has 43 locations, of which 32 are in the top 50 metropolitan areas.
Sales from the 10 Execair FBOs in the last full year were almost £8M. Signature will benefit from volume and cost synergies on the combination of Execair with its existing business and the acquisition is expected to be earnings enhancing in its first full year.
Commenting on the transaction, Roy McGlone, BBA Group PLC Chief Executive, said:
"This acquisition represents a unique opportunity to further develop our European network which is a key element of our global growth strategy for Signature. This consolidates our position in the UK and provides us with a broader base of operations from which to continue our growth plans for the region."
Enquiries
Roy McGlone, Group Chief Executive, BBA Group PLC, 020 7514 3999
Andrew Wood, Group Finance Director
Catherine Hicks, Brunswick, 020 7404 5959
Kevin Byram
2004 Interims Results Presentation, 2nd September 2004