just looking Posted January 30, 2007 Report Share Posted January 30, 2007 Discovery Air Inc. announces interim agreement to purchase VIH Aviation Group Ltd. LONDON, ON, Jan. 30 /CNW/ - David Taylor, President & C.E.O. of Discovery Air Inc. (TSX: DA.A) is pleased to announce that Discovery Air has entered into an Interim Agreement to purchase all of the issued and outstanding shares of VIH Aviation Group Ltd. and its affiliate, YYJ FBO Services Ltd. ("VIH"). VIH operates a fleet of over 60 helicopters with a head office in Victoria, British Columbia. Mr. Taylor stated, "I am very pleased that Discovery Air was able to bring VIH and Great Slave Helicopters together. These two titans of the Canadian helicopter industry represent a powerful new force in the industry." Great Slave Helicopters Ltd. ("GSHL"), a subsidiary of Discovery Air, operates a fleet of 70 light and medium VFR helicopters and dominates the northern and central Canadian markets. VIH primarily operates a fleet of heavy and IMC capable helicopters in the coastal regions of Canada. Ken Norie, VIH's owner and President, said "I have known Adam Bembridge, GSHL's President, for over 20 years and am looking forward to working with him to capitalize on the many synergies between our two companies." When asked about the size of the VIH acquisition, Mr. Taylor said "VIH effectively doubles the size of Discovery Air's annual revenues and earnings. VIH has an excellent reputation in the helicopter industry which is in large part due to its dedicated long-standing employees who will continue to be a valuable asset to VIH and the Discovery Air team going forward." The completion of the acquisition of VIH is subject to a number of conditions, including receipt of all necessary regulatory and other approvals. The Interim Agreement sets out a purchase price of $50 million cash, 65 million Class A common shares of Discovery Air and an option to purchase 2 million Class A common shares of Discovery Air for $2.00 over 10 years. The purchase price is subject to adjustment based on VIH's adjusted consolidated EBITDA as at December 31, 2006. Based on unaudited figures at the year ending December 31, 2006, VIH had revenues of over $125 million with approximately $10 million net income and EBITDA of approximately $26 million. VIH's total assets at the end of 2006 were in excess of $145 million. Discovery Air's goal is to consolidate the fragmented Canadian niche aviation industry to realize synergies and economies of scale, thereby creating a profitable and diversified company able to deliver safe, professional air service to clients in selected niche markets. Discovery Air's Class A common shares trade on the Toronto Stock Exchange under the symbol DA.A. On behalf of the Board of Directors: David R. Taylor, President & C.E.O. Quote Link to comment Share on other sites More sharing options...
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