September 26, 2006
BBA Aviation acquires Executive Beechcraft, Inc
BBA Aviation today announces that it has reached a definitive agreement to acquire 100% of the capital stock of Executive Beechcraft, Inc (EB). The acquisition includes the operations of four full-service FBOs and encompasses their associated maintenance services and charter/management businesses as well as aircraft sales activities and all aircraft inventory. In the year ended 31 December 2006, Executive Beechcraft had sales of $63M and gross assets of $33M.
Executive Beechcraft was founded in 1938 by Dan Meisinger, Sr. and is currently owned by members of the Meisinger family. Executive Beechcraft is among the industry's oldest continuously operated general aviation sales and service organisations. BBA Aviation intends that the business will continue to operate as Executive Beechcraft, providing the same portfolio of products and services that the Company's customers and represented OEMs have come to rely upon.
With its flagship facility at Kansas City Downtown Airport (MKC), the Company has grown to include four full service FBOs, encompassing aircraft sales and service locations. Along with MKC, these are located at Kansas City International Airport (MCI); New Century Air Center (IXD) and Spirit of St. Louis Airport (SUS).
In addition to providing a full range of FBO services and available hangar storage, Executive Beechcraft is an authorised independent dealer and service centre for Hawker Beechcraft (formerly Raytheon Aircraft Company) for piston, King Air and Hawker 400 series aircraft. The Company also serves as an authorised sales and service centre for both Cirrus Design and Mooney Aircraft Company.
Both Kansas City and St Louis are fast growing metropolitan areas, classified in the US Top 50, and are home to a number of major company headquarters and large manufacturing plants. Both are seeing strong growth in demand for business aviation. In Kansas, EB is currently the sole provider of FBO services at both MKC and MCI and is the market leader at IXD. At Spirit Airport in St. Louis, EB also has a strong market position and, at each location, benefits from long lease terms.
Closing of the deal is expected to occur by June 30, 2007.
Commenting on the transaction Michael Harper, Executive Chairman of BBA Aviation said,
"I am very pleased to announce the acquisition of Executive Beechcraft, Inc which demonstrates the quality of the opportunities available in the fast growing business aviation market.
"Executive Beechcraft is a well-established, quality brand with an excellent mix of locations, products and services that will ideally complement BBA Aviation's strong flight support network as well as provide a platform for continued acquisition and expansion into new markets and services. Given its lease terms and solid financial performance we believe this acquisition will provide long term revenue streams and profitable opportunities for many years to come."
Enquiries:
BBA Aviation plc
Michael Harper - Executive Chairman
Andrew Wood - Finance Director
020 7514 3999
Brunswick Group LLP
Lucie Anne Brailsford / Jemma Hill
020 7404 5959
Notes to Editors
BBA Aviation
BBA Aviation is a world leader in aviation services focusing on Aviation Flight Support and Aftermarket Services and Systems. BBA Aviation provides flight support services for corporate and commercial aviation customers as well as maintenance, repair, overhaul and spare parts for aircraft engines. It also supplies aviation components, landing gear and hydraulic systems. These are attractive niches in a $250 billion market with clear barriers to entry, where BBA has leading positions, well-known and reputable brands and a proven track record of organic and acquisition-led growth.
BBA Aviation was formerly part of BBA Group, but following the demerger of Fiberweb, in November 2006 it became a stand-alone aviation services business.
