12-Jan-2012 Source: Exchange
Exchange Income Corporation (TSX:Â EIF) (“Exchange” or the “Corporation”), announced today that it has signed a letter of intent to acquire the operations and assets of Custom Helicopters Ltd., a privately-owned provider of helicopter-based aviation services in Manitoba and Nunavut.
The acquisition is valued atÂ $29 million, and will be paid through a combination of cash and the issuance of the Corporation’s common shares. The acquisition is expected to be immediately accretive to Exchange’s earnings per share and free cash flow per share. Pending final due diligence and satisfaction of typical conditions, including regulatory approval, the transaction is expected to close in the first quarter of 2012.
“We believe that market conditions are favorable for us to begin to deploy some of the more thanÂ $200 millionÂ we have available to support our disciplined acquisition strategy,” statedÂ Mr. Mike Pyle, President and CEO of Exchange Income Corporation.Â “Custom Helicopters represents a strategic acquisition as it allows us to enter a new segment of the aviation market, one with strong and sustainable margins. Consistent with our business model, Custom’s senior management will be retained through long-term services contracts.Â We look forward to welcoming Custom Helicopters into Exchange’s growing Aviation segment.”
Jim Hawes, Founder and President of Custom Helicopters Ltd., stated, “We look forward to enhancing the business opportunities of Custom Helicopters with Exchange’s financial resources and through operational synergies with Exchange’s other aviation companies. We look forward to tapping into Exchange’s strong relationships with northern and First Nation communities, which will help Custom Helicopters attain new levels of success.”
About Exchange Income CorporationÂ
Exchange Income Corporation is a diversified acquisition-oriented company, focused on opportunities in the industrial products and transportation sectors which are ideally suited for public markets except for their size. The strategy of the Corporation is to invest in profitable, well-established companies with strong cash flows operating in niche markets inÂ CanadaÂ and/or theÂ United States.
The Corporation is currently operating in two niche business segments: aviation and specialty manufacturing. The aviation segment consists of the operations by Perimeter Aviation, Keewatin Air, Calm Air International and Bearskin Lake Air Service and the specialty manufacturing segment consists of the operations byÂ Jasper Tank, Overlanders Manufacturing, Water Blast Manufacturing, Stainless Fabrication and WesTower Communications.Â For more information on Exchange Income Corporation, please visitÂ www.exchangeincomecorp.ca.
Additional information relating to the Corporation, including all public filings, is available on SEDAR (www.sedar.com).