8th December 2004
BBA ANNOUNCES TWO ACQUISITIONS
BOKER AEROCLEAN LTD AND FBO SHANNON
BBA Group PLC today announces that it has agreed to acquire Boker Aeroclean Ltd, a privately owned aircraft cleaning company, for a debt and cash free consideration of £11.6 million. BBA has also agreed to acquire 85% of FBO Shannon, a privately owned fixed base operation business based in Shannon Airport, for a total of €2.55m (£1.76m).
Boker Aeroclean Ltd
Boker provides aircraft cleaning services at London Heathrow, and represents 25% of the total airport aircraft cleaning business, holding contracts with BA, United, and Qantas, amongst others. It will become part of ASIG, BBA Group's Commercial Aviation Service division. ASIG is the fourth largest independent ground-handling company in the world.
For the year ended 31 March 2004, Turnover was £10.2m on Net Operating Assets of approximately £0.5m. The acquisition is expected to be earnings enhancing in the first year. It will provide an entry point into the non-fuel services market, diversifying ASIG's current business portfolio.
FBO Shannon
The acquisition of FBO Shannon provides BBA's subsidiary Signature Flight Support with a corporate handling service at a key technical stop destination for transatlantic flights. In addition to Shannon, the business can also provide services at Cork Airport, further expanding Signature Flight Support's presence in Ireland through its recently acquired FBO at Dublin Airport.
For the year ended 31 December 2003, Turnover was £1.3m on Net Operating Assets of approximately £0.1m. The acquisition is expected to be earnings enhancing in the first year.
This acquisition adds to Signature's previous acquisitions of Execair and EAS at Heathrow. Signature will now have a European network of 19 FBO's, compared to five at the beginning of 2004.
The Global network will now comprise 66 FBO's across the world.
Commenting on the transactions, Roy McGlone, BBA Group PLC Chief Executive, said:
"We are committed to growing our aviation businesses organically and through acquisitions."
"The purchase of Boker will expand ASIG Europe's offering into the new area of aircraft cleaning, broadening its range of services and enabling ASIG to double its current revenues in Europe. Following the acquisition last month of AGI, this acquisition is consistent with our strategy of acquiring high quality service providers where above average profits can be achieved."
"The acquisition of the FBO in Shannon will further consolidate Signature's growing position in the European market."
Enquiries
Roy McGlone, Group Chief Executive, BBA Group PLC, 020 7514 3999
Andrew Wood, Group Finance Director
Mike Smith, Brunswick, 020 7404 5959
Emily Kerr
2004 Interims Results Presentation, 2nd September 2004