Canadian Helicopters Income Fund (CA:CHL.UN 12.25, -0.20, -1.61%)Â (the “Fund”) is pleased to announce that it has indirectly acquired, through Heli-Welders Canada Ltd. (“Heli-Welders”), substantially all of the assets of Nampa Valley Helicopters, Inc. (“Nampa”) for a purchase price of US$6,700,000, subject to customary post-closing adjustments.
Nampa is a Boise, Idaho-based service center which specializes in the repair and overhaul of Eurocopter dynamic components and which reported revenues of approximately US$4.9 million in its last full fiscal year. Nampa is also recognized as an American Eurocopter service center and is certified by the U.S. Federal Aviation Administration and the European Aviation Safety Agency.
Prior to the acquisition, the Fund, through its subsidiary Canadian Helicopters Limited (“CHL”), completed an additional investment in Heli-Welders, thereby increasing its interest in Heli-Welders from 49% to approximately 80%. The proceeds of this additional investment were used by Heli-Welders to complete the acquisition of the Nampa assets through a wholly-owned US subsidiary.
Nampa will be managed by the current management of Heli-Welders, with assistance from the current management of Nampa to ensure a smooth transition.
“Nampa, which is known for high quality work, is an excellent fit with Heli-Welders as both focus on Eurocopter products, including the popular AS350 and niche AS355 aircraft: Heli-Welders on the airframe and Nampa on the dynamic components. The AS350/355 series has achieved significant market penetration throughout the world with a growing fleet of approximately 4,000 aircraft, 47 of which are currently operated by Canadian Helicopters” said Don Wall, President and Chief Executive Officer of Canadian Helicopters. “This transaction builds on previous efforts towards increased diversification for Canadian Helicopters into a niche that is less seasonal, and less dependent on flight operations.”
Founded in 2004, Heli-Welders is a Langley, British Columbia-based airframe repair business primarily specializing in Eurocopter AS350/355 aircraft. CHL acquired a 49% interest in Heli-Welders in April 2009. Heli-Welders is fully certified by Transport Canada and the European Aviation Safety Agency and its focus on aircraft type ensures dedicated service and support of the highest quality. The terms of the ongoing relationship with Heli-Welders’ other shareholders contemplate the potential acquisition by Canadian Helicopters of the balance of the shares in Heli-Welders.
ABOUT CANADIAN HELICOPTERS INCOME FUND
Through Canadian Helicopters Limited, Canadian Helicopters Income Fund is the largest helicopter transportation services company operating in Canada and one of the largest in the world based on the size of its fleet. With over 35 base locations across Canada, Canadian Helicopters provides helicopter services to a broad range of sectors, including emergency medical services, infrastructure maintenance, utilities, oil and gas, mining, forestry and construction. In addition to helicopter transportation services, Canadian Helicopters operates three flight schools, provides third party repair and maintenance services in Canada and provides military support in Afghanistan. With over 60 years of experience, Canadian Helicopters is an industry leader in establishing safety standards and operating procedures.
This press release contains forward-looking statements relating to the future performance of the Fund. Forward-looking statements, specifically those concerning future performance, intentions regarding investments and management, are subject to certain risks and uncertainties, and actual results may differ materially. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they were made. The Fund disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise unless being required by applicable laws.
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