BBA Aviation PLC Disposal of ASIG to John Menzies plc for $202m (0346K)
September 16 2016 - 2:00AM
UK Regulatory
TIDMBBA
RNS Number : 0346K
BBA Aviation PLC
16 September 2016
16 SEPTEMBER 2016
Disposal of ASIG to John Menzies plc for $202 million
Following a number of approaches and subsequent formal review,
BBA Aviation plc ("BBA Aviation", "the Group"), a market-leading
provider of global aviation support and aftermarket services,
announces that it has reached agreement with John Menzies plc
("Menzies") on the terms of the sale of ASIG, a leading commercial
aviation services company, for $202 million in cash. Menzies is
funding the acquisition through raising additional debt and equity
and, in addition to customary approvals, the transaction will
require the approval of its shareholders. As a result of this
process, the disposal is expected to close around the end of
2016.
ASIG is the world's leading independent refueller, employing
approximately 8,000 people, and providing ground, fuel and airport
facility services to airlines, airports, oil companies and industry
partners in the commercial aviation sector. It safely delivers
flexible and comprehensive service solutions including refuelling,
fuel farm management, ground handling, aircraft technical support
services, facilities equipment maintenance and de-icing, with
considerable technical expertise at more than 80 airports in North
America, Central America, Europe and Asia.
ASIG's EBITDA for the twelve months to 31 December 2015 was
$31.9 million and its underlying and statutory profit before tax
were $20.3 million and $17.9 million respectively, while the value
of the gross assets at 30 June 2016 was $255.6 million.
Financial effects of the transaction
Gross consideration of $202 million is anticipated to deliver
approximately $160 million of net proceeds after tax, professional
transaction fees, and other costs, which will be used to reduce
Group borrowings. As part of the transaction, BBA Aviation will
provide transitional services to Menzies for support services for a
six month period following closing. After adjusting for costs of
providing the transitional services, foreign exchange reserves
write-off, and other charges, the transaction will realise a loss
on disposal in the region of $15 million.
The Group will look to reduce the $20 million ongoing support
costs previously allocated to ASIG by at least half during the 12
months following transition at a one-off cost of around $5
million.
Commenting on the announcement, Simon Pryce, BBA Aviation Group
Chief Executive said:
"As part of our continuing emphasis on delivering long-term,
sustainable value for shareholders, after receiving a number of
approaches and going through a detailed process, we are pleased to
announce the sale of ASIG to Menzies to create a focused and
larger, broad based global supplier of commercial aviation
services. This disposal further enhances BBA Aviation's focus as a
high quality, strongly cash generative market leader in the
provision of business and general aviation and legacy support
services."
This announcement contains inside information.
Enquiries:
BBA Aviation plc
Mike Powell, Group Finance Director / Martha Walsh, Interim Head
of Investor Relations
(020) 7514 3999
Tulchan Communications
David Allchurch / Doug Campbell
(020) 7353 4200
Information on BBA Aviation plc
BBA Aviation plc is a leading global aviation support and
aftermarket services provider with market leading businesses and
attractive growth opportunities, employing almost 15,000 people
worldwide. BBA Aviation's Flight Support businesses (Signature
Flight Support and ASIG) are focused on refuelling and ground
handling of business and commercial aviation aircraft. Its
Aftermarket Services businesses (Dallas Airmotive, H+S Aviation,
International Turbine Service, Barrett Turbine Engine Company,
International Governor Services and Ontic) are focused on the
repair and overhaul of jet engines and the service of aerospace
sub-systems and components. For more information, please visit
www.bbaaviation.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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