BBA Aviation PLC Acquisition (9496O)

TIDMBBA

RNS Number : 9496O

BBA Aviation PLC

23 May 2018

BBA Aviation acquires fuel services partner EPIC

BBA Aviation (the "Group"), a market-leading provider of global aviation support and aftermarket services, is pleased to announce the acquisition of EPIC Aviation LLC, doing business as EPIC Fuels ("EPIC"), a leading fuel and fuel related services supplier to an extensive FBO network for a cash consideration of $88.1m.

EPIC provides fuel and fuel related services at 205 privately owned independent FBO locations, 185 of these locations are branded EPIC and 20 are branded UVAir. The addition of EPIC's 205 FBO locations is complementary to our existing Signature Select(R) branded locations, establishing a virtual, non-owned, network to operate alongside our market-leading owned FBO network. This creates a total network of over 400 FBO locations significantly extending Signature's network relevance and the range of services it can offer.

EPIC is our existing Signature fuel card partner and the acquisition allows Signature to have full end-to-end management of the existing SFS EPIC fuel card programme, associated transaction processing and data capture as a platform for an enhanced service offering across our entire network. The Group will also acquire EPIC's proprietary QTPod technology for self-fuelling AvGas services. QTPod has potential to expand its footprint in the aviation industry with a new proprietary and cloud based self-serve fuelling terminal.

EPIC is expected to contribute revenue of around $400m in the first full year of ownership. The $88.1m consideration represents an expected year one EBITDA multiple of 11.7x pre- acquisition related expenses of around $1.2m and EPIC is expected to achieve BBA's ROIC target threshold of 12% by year three. The acquisition is subject to certain governmental and regulatory approvals and we expect to complete in Q3 2018.

Mark Johnstone, BBA Aviation Group Chief Executive commented "We are pleased to have reached an agreement to acquire EPIC. This acquisition fully supports the strategic development of Signature through increasing our network relevance, extending the range of fuel and non-fuel services we offer our customers across our unique FBO network and continuing to establish a competitive cost structure through investment in technology and economies of scale."

Notes:

The Group will publish its interim results for the half year ended 30 June 2018 on 1 August 2018.

Enquiries:

BBA Aviation plc

David Crook, Group Finance Director

Kate Moy, Head of Investor Relations and Communications

(020) 7514 3999

Tulchan Communications

Toby Bates

(020) 7353 4200

Information on BBA Aviation plc

BBA Aviation plc is a market leading, global aviation support and aftermarket services provider, primarily focused on servicing the Business and General Aviation (B&GA) market. We support our customers through three principal businesses: Signature Flight Support and Signature TECHNICAir(TM) which provide premium, full service flight and home base support including refuelling, ground handling and MRO services through the world's largest fixed base operation (FBO) network for B&GA users with around 200 locations covering key destinations in North America, Europe, South America, Caribbean, Africa and Asia. Ontic is a leading provider of high-quality equipment and cost-effective solutions for the continuing support of maturing and legacy aerospace platforms with locations in the USA, Europe and Asia. Engine Repair & Overhaul/Global Engine Services is a leading independent engine service provider to global B&GA operators, the rotorcraft market and regional airline fleets with locations in the USA, Europe, South America, Asia and the Middle East. For more information, please visit www.bbaaviation.com

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