Avincis announces takeovers
On 27 March, UK-based Avincis Group announced moves to acquire Scandinavian Air Ambulance (SAA), and for Babcock International Group PLC to acquire Avincis for around £1 billion.
On 27 March, UK-based Avincis Group announced moves to acquire Scandinavian Air Ambulance (SAA), and for Babcock International Group PLC to acquire Avincis for around £1 billion.
Babcock, a UK engineering support services company, has entered into a conditional agreement to acquire the entire share capital of Avincis Mission Critical Services Topco Ltd from its parent holding company, World Helicopters S.à r. Peter Rogers, chief executive of Babcock, said: “The proposed acquisition of Avincis meets Babcock’s strategic objectives as it brings into the Babcock group a market-leading business, delivering mission critical services and complex engineering support to blue-chip customers in multiple geographies. Avincis already has a strong growth platform and its combination with Babcock will generate even greater expansion opportunities and value creation for Babcock’s shareholders.”
James Drummond, chief executive of Avincis, added: “Babcock is a great strategic and cultural fit for Avincis. We provide vital, complex and life-saving services for our customers, and both share a commitment to operational excellence and the highest standards of safety. Avincis’ global business has grown significantly over the past few years, and joining forces with Babcock will allow the strengthened group to access new markets and customers, and build on an already impressive order intake.”
Babcock intends to fund the proposed acquisition through a fully underwritten rights issue of its existing ordinary shares. Completion of the proposed acquisition is conditional on approval of the proposed acquisition by the shareholders’ general meeting of Babcock, as well as regulatory approval. Completion of the proposed acquisition is expected to take place in May 2014.
Meanwhile, Scandinavian Air Ambulance (SAA), a provider of air ambulance services in the Nordic region headquartered in Sweden, announced its intention to join the Avincis Group. The total enterprise value derived from the purchase price amounts to SW707 kr million. The agreement would see Avincis acquire 84.6 per cent of SAA for an initial cash consideration of 206.5 kr million, with a further 84.2 kr million in the form of a vendor note payable in cash in two years’ time. The transaction is subject to the satisfaction of certain conditions and regulatory approvals prior to 30 June 2014.
SAA’s fleet of 22 aircraft annually transports more than 14,000 patients across Sweden, Finland and Denmark, making it a ‘natural fit’ for Avincis, whose mission is to save lives, protect the environment and safely transport mission critical people and assets, said SAA. Under the deal, SAA would continue its existing operations serving customers across Scandinavia, and would continue to manage the business. SAA founder and CEO Henry Hansen would continue to lead SAA and all Avincis’ emergency services in Scandinavia. In addition, Hansen would reinvest a significant portion of the equity of SAA.
According to the announcement, as a part of Avincis, SAA stands to gain the organisational capability, resources and know-how to allow it to continue to grow and develop its operations throughout the Nordic region. Headquartered in London, Avincis provides central resources such as safety and engineering operating systems, standards and expertise to its operating companies who serve their local markets and customers and retain their unique identities.
James Drummond commented: “SAA has a strong team and business which is very well aligned to the Avincis mission and values, and would bring not only Nordic expertise and experience, but 160 skilled people with an enviable track record of saving lives. I look forward to being able to welcome them to our Group and look forward to helping them grow the business.”
Hansen added: “I am pleased at the prospect of joining forces with one of the world’s leading air ambulance providers. We have established SAA as a leading and professional Scandinavian air ambulance company, and Avincis’ support would allow us to build on that success.”
Avincis’ existing companies deliver medical emergency, search and rescue, firefighting and energy support services across eight countries worldwide with a fleet of 343 aircraft.