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BBA Aviation plc’s Ontic Acquires GE Aviation Systems’ Legacy Fuel Measurement Business

Dépèche transmise le 2 mars 2011 par Business Wire

BBA Aviation plc’s Ontic Acquires GE Aviation Systems’ Legacy Fuel Measurement Business

LONDON--(BUSINESS WIRE)--Ontic, the aerospace industry’s leading producer of licensed or acquired OEM legacy products, and part of the BBA Aviation Legacy Support Group, has reached agreement to acquire GE Aviation Systems’ legacy fuel measurement business (the “Business”) for a cash consideration of $62.5m on a cash and debt free basis. In addition to the purchase price, BBA Aviation will make a further investment of approximately $7.0m in working capital and fixed assets.

The Business assembles, sells and overhauls fuel gauging and measurement systems to leading defense and commercial airframe OEMs, tier one suppliers and air frame operators. Its products serve a large and growing installed base of over 6,200 active aircraft. Key platforms include A319/320, B777, Eurofighter Typhoon, AW101 and Hawk2. The acquisition enhances Legacy Support’s exposure to the commercial aviation market on large platforms with a significant installed base, high utilization rates and extended in-service lives. It also expands its non-US product portfolio and adds third generation electronics expertise, an increasingly important legacy market.

The Business generated EBITDA of approximately $9m in 2010 on revenues of c.$43m and as at year end, had gross assets of $7.6m. Approximately half of its revenues are derived from replacement components and repairs and half from OE production, with good order visibility and protected intellectual property. The acquisition is expected to meet BBA Aviation’s 12% ROIC hurdle by year three. However, together with the impact of the planned equity placing, announced separately today, there will be a marginal dilution of earnings.

The Business is currently located in three facilities in the UK, US and Singapore, all of which will be transferred to nearby BBA Aviation sites and will operate under the BBA Aviation Ontic brand following a phased integration process.

The transaction is expected to complete by the end of March, subject to the satisfaction of certain conditions.

Simon Pryce, Group Chief Executive of BBA Aviation, stated:

"This acquisition continues the exciting development of BBA Aviation’s Legacy Support business. It strengthens our position as the provider of OE standard legacy parts into the aftermarket, extends our content on core platforms, gives us critical mass outside the US and enhances our technological expertise in the important and growing area of legacy electronics. The strategic fit of this business within Legacy Support has benefits for customers and employees and is an excellent value creation opportunity for BBA Aviation.”

NOTES TO EDITORS

BBA Aviation plc is a leading global aviation support and aftermarket services provider with market leading businesses and attractive growth opportunities. BBA Aviation's Flight Support businesses (Signature Flight Support and ASIG) are focused on refueling and ground handling of business and commercial aviation aircraft. Its Aftermarket Services and Systems businesses (Dallas Airmotive, Premier Turbines, H&S Aviation, International Turbine Service, Barrett Turbine Engine Company, International Governor Services, Ontic, Legacy Support Houston and APPH) are focused on the repair and overhaul of jet engines and the design, manufacture and service of aerospace sub-systems and components. For more information, please visit www.bbaaviation.com.

BBA Aviation Legacy Support is a leading provider of licensed legacy parts and repair and overhaul services for mature aerospace platforms. The business provides solutions for aerospace OEMs and their customers by taking complete responsibility for their non-core and legacy products, allowing them to focus on current and future programs. BBA Aviation acquired Ontic, the largest of its Legacy Support businesses, in 2006 and since then it has grown significantly with a portfolio of more than 4,000 end item assemblies plus their associated sub-assemblies and components. Legacy Support generated revenues of £61.5m in the year to 31 December 2010, an organic increase of 16% over the prior year (2009: £52.4m).