11th May 2004
BBA ANNOUNCES $14.5M ACQUISITION FBO, CECIL FIELD AIRPORT, JACKSONVILLE USA
BBA Group PLC today announces that its wholly owned subsidiary Signature Flight Support has agreed to acquire the former AirKaman fixed base operation (FBO) at Cecil Field Airport, located near Jacksonville, Florida, for a consideration of US$14.5m (£8.15m).
Cecil Field is a reliever airport for the Jacksonville Airport Authority, and is located about 15 miles west of Jacksonville, providing an effective base of operations for a range of aircraft including business aircraft, general aviation, air cargo and military aviation operators.
BBA is the world's largest operator of FBOs servicing business aircraft. In North America it now has 43 locations, of which 32 are in the top 50 metropolitan areas. This acquisition complements BBA's FBO in Jacksonville International Airport (JAX), acquired by Signature in July 2002.
Sales at Cecil Field FBO in the last full year were in excess of $10m. The acquisition is expected to be earnings enhancing in its first full year.
Note: amounts denominated in pounds sterling have been converted using an exchange rate of $1.78: UK£1, the rate ruling at the close of business on 10 May 2004.
Commenting on the transaction, Roy McGlone, BBA Group PLC Chief Executive, said:
"This acquisition supports our strategy to expand the Signature FBO network in core metropolitan markets in the US, with North Florida representing a key business centre in south eastern USA.
We expect the improving aviation market trends we saw toward the end of last year to continue this year. In line with this, the Cecil Field acquisition fits with our strategy to place increasing emphasis on growth, while meeting strict criteria for acquiring strong cash flow and high margin businesses."
Enquiries
Roy McGlone, Group Chief Executive, BBA Group PLC, 020 7514 3999
Andrew Wood, Group Finance Director
Mike Smith, Brunswick, 020 7404 5959
Catherine Bertwistle
2004 Interims Results Presentation, 2nd September 2004