Cobham plc (‘Cobham’ or ‘the Group’) today announces that it has completed the acquisition of the 50% shareholding that it did not already own in FB Heliservices Ltd, FB Leasing Limited and FBS Limited (together ‘FBH’), from its long standing joint venture partner, Bristow Helicopters Limited (‘Bristow’). The transaction comprises cash consideration of £74 million payable on completion, together with the assumption of Bristow’s share of FBH’s net debt.
Commenting on the acquisition, Cobham Chief Executive Officer, Bob Murphy said: “FBH is a business we know extremely well through our long established joint venture arrangement and it has capabilities that are highly complementary to our existing Aviation Services business. It also brings a long track record of operating in attractive, specialist outsourcing markets with demonstrable success in winning contracts across the globe”.
“We also offer our thanks to Bristow at the conclusion of this joint venture partnership, as FBH has successfully served to benefit all its stakeholders, including the UK Ministry of Defence and its other customers globally.”
It is expected that the acquisition will be immediately earnings enhancing and will cover the cost of capital in the first year of ownership. The implied transaction multiple is an estimated 7.4x FBH’s 2012 EBITDA.
Source: Cobham Plc (LSE: COB.L)
Date: Jul 16, 2013