Strategic acquisition part of Exchange's
continued investment in province of Manitoba
WINNIPEG, Dec. 20, 2018 /CNW/ - Exchange Income Corporation
(TSX: EIF) (the "Corporation" or EIC"), a diversified,
acquisition-oriented company focused on opportunities in the
aviation, aerospace and manufacturing sectors, announced today that
it has completed the acquisition of certain assets and
operations of Wings Over Kississing ("Wings") for a purchase price
of $10 million, subject to customary post-closing adjustments.
The purchase was funded by the issuance of $2.2 million of EIC common shares to the vendors
and $7.8 million of cash from
its unutilized credit facility.
Wings is an operator of fixed wing and rotary wing aircraft in
the province of Manitoba. EIC has
acquired Wings' rotary wing operations that are focused in the
Island Lake region, their King Air
200 charter operations focused in Thompson, a 27,000 square foot hangar at the
St. Andrews Airport, and their fueling operations at the Thompson
Airport.
"The acquisition of these operations and assets significantly
strengthen our aviation operations in Manitoba," said Mike Pyle, Chief
Executive Officer of EIC. "The King Air charter operations provide
us with a new charter platform, and combined with the fueling
station at Thompson Airport, allows us to better serve this key
travel hub for communities in Northern
Manitoba. The addition of the rotary wing operations enables
us to continue to build our partnership with customers in the
Island Lake region. The St.
Andrews hangar represents a significantly upgraded facility for
Custom. Continued investment in the province is important for EIC
and we look forward to breaking ground on the previously announced
new 60,000 square foot hangar at the Winnipeg International Airport in the near
future as part of EIC bringing the heavy maintenance for the Fixed
Wing Search and Rescue to Manitoba. Accretive acquisitions and
investment in our operations is the foundation to our business
model. This model has led to robust growth in EBITDA and adjusted
EPS over the last number of years, particularly in 2018, and is
expected to continue in 2019."
Curt Enns, the founder and
President of Wings stated, "We are very pleased that our St.
Andrew's base, fuel, King Air 200 and Island Lake helicopter operations found a good
home with EIC. As a proud Manitoban, we are happy that our
operations are going to a great company with their home base in
Manitoba. My wife, Juanita, and I
will continue to focus on our lodge and remaining aircraft
platform, including float operations. We look forward to
working with EIC as we focus on our other businesses."
About Exchange Income Corporation
Exchange Income Corporation is a diversified acquisition-oriented
company, focused in two sectors: aerospace & aviation services
and equipment, and manufacturing. The Corporation uses a
disciplined acquisition strategy to identify already profitable,
well-established companies that have strong management teams,
generate steady cash flow, operate in niche markets and have
opportunities for organic growth.
The Corporation currently operates two segments: Aerospace &
Aviation and Manufacturing. The Aerospace & Aviation segment
consists of the operations by Perimeter Aviation, Keewatin Air,
Calm Air International, Bearskin Lake Air Service (operating as a
division of Perimeter Aviation), Custom Helicopters, Regional One,
Provincial Aerospace and Moncton Flight
College, and an investment in Wasaya Group. The
Manufacturing segment consists of the operations of Overlanders
Manufacturing, Water Blast, Stainless Fabrication, WesTower
Communications, Ben Machine and Quest Window Systems. For more
information on the Corporation, please visit
www.ExchangeIncomeCorp.ca. Additional information relating to the
Corporation, including all public filings, is available on SEDAR
(www.sedar.com).
Caution concerning forward-looking statements
The statements contained in this news release that are
forward-looking are based on current expectations and are subject
to a number of uncertainties and risks, and actual results may
differ materially. These uncertainties and risks include, but are
not limited to, the dependence of Exchange Income Corporation on
the operations and assets currently owned by it, the degree to
which its subsidiaries are leveraged, the fact that cash
distributions are not guaranteed and will fluctuate with the
Corporation's financial performance, dilution, restrictions on
potential future growth, the risk of shareholder liability,
competitive pressures (including price competition), changes in
market activity, the cyclicality of the industries, seasonality of
the businesses, poor weather conditions, foreign currency
fluctuations, legal proceedings, commodity prices and raw material
exposure, dependence on key personnel, and environmental, health
and safety and other regulatory requirements. Except as required by
Canadian Securities Law, Exchange does not undertake to update any
forward-looking statements; such statements speak only as of the
date made. Further information about these and other risks and
uncertainties can be found in the disclosure documents filed by
Exchange Income Corporation with the securities regulatory
authorities, available at www.sedar.com.
SOURCE Exchange Income Corporation