28th October 2004
BBA ANNOUNCES TWO ACQUISITIONS
AIRPORT GROUP INTERNATIONAL AND FBO AT HEATHROW AIRPORT
BBA Group PLC today announces that it has agreed to acquire Airport Group International, an airport services company, for a debt and cash free consideration of $24 million (£13 million) from TBI plc. BBA has also agreed to acquire Executive Aircraft Services, an FBO from Group4Securicor for a total of £4.5m.
Airport Group International ("AGI")
AGI provides ground handling, air cargo handling, airport facility services and fuel services to 17 airports in the USA and Guam. It will become part of ASIG, BBA Group's Commercial Aviation Services division. ASIG is the largest into-plane fuel provider to commercial aviation in the USA and the fourth largest independent ground-handling company in the world.
The acquisition is part of ASIG's strategy to consolidate quality and like-minded service companies. It will expand operations in key gateway airports, in this case including Los Angeles, San Francisco, Chicago O'Hare and Atlanta, and will add seven new locations to ASIG's network and broaden its customer portfolio. It will allow ASIG to build upon its experience as a commercial service provider, and to expand in its four main lines of business; ground handling, cargo, airport facility, and fuelling services.
For the year ended 31 March 2004, Turnover was $43.4m on Net Operating Assets of approximately $7m. The acquisition is expected to be earnings enhancing in the first year.
Executive Aviation
The acquisition of Executive Aircraft Services ("EAS") provides Signature Flight Support with a base at Heathrow Airport, adding a key strategic location to its growing global Fixed Base Operation (FBO) network.
As an FBO, EAS provides passenger handling, flight planning and ground transportation services to business and general aviation customers at Heathrow. EAS serves a global customer base including the growing number of business aircraft based in Asia and the Middle East and further extends Signature's support of these markets.
For the year ended 30 September 2004, Turnover was approximately £2.2m on net operating assets of approximately £300,000. The acquisition is expected to be earnings enhancing in the first year.
BBA's Signature Flight Support is the world's largest operator of FBOs, with 18 in Europe, and 42 locations in the USA, of which 32 are in the top 50 metropolitan areas.
Other recent acquisitions in BBA's Aviation division have included Signature's acquisition of 10 FBOs from John Menzies in August, as well as the purchase of two bases in Greece in September and the AirKaman FBO in Florida in May. In July, Dallas Airmotive announced the addition of two more Pratt & Whitney engines to its servicing portfolio - PW300 and PW500.
Commenting on the transactions, Roy McGlone, BBA Group PLC Chief Executive, said:
"These deals are part of our strategy to grow our aviation businesses organically and by acquisition.
"The purchase of AGI will expand ASIG's customer base, range of services, and presence in key locations, and will provide a significant opportunity for synergy benefits.
"The acquisition of EAS will also build our capital city portfolio and further enhance Signature's 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