Beekman’s REVA postpones sale, considers recap

  • Beekman invested in jet-ambulance provider in 2012
  • Company held discussions with both sponsors and strategics
  • Wells Fargo process for REVA peer, Vistria’s Angel Medflight, has yet to produce deal

Beekman Group shelved its sales process for REVA Inc, choosing instead to pursue a potential recap of the jet air-ambulance company, Buyouts has learned.

The Fort Lauderdale, Florida, company was under a letter of intent with a sponsor, but Beekman withdrew the company from the auction block after it didn’t fetch its desired valuation, a source familiar with the matter said.

REVA, which also held conversations with strategic buyers, will instead consider a recap and is likely to return to the market in a year-plus, the source said.

Buyouts initially reported in September that REVA, the world’s largest dedicated provider of fixed-wing air-ambulance services, was working with Harris Williams on a sales process.

A REVA peer, Vistria Group-backed Angel Medflight, was at the same time working with Wells Fargo Securities to explore a sale. The Scottsdale, Arizona, medical-transport company also has yet to trade hands.

Beekman’s majority investment in REVA dates to March 2012, when the New York sponsor recapped the company, then called Aero Medical International. The company was formed through the merger of Aero Jet International and Air Ambulance Professionals.

REVA was projecting around $13 million of EBITDA in 2017, two sources previously told Buyouts.

REVA was deemed most likely to trade to a sophisticated financial buyer with an understanding of both the healthcare and logistics aspects of the business, sources said.

While financial buyers found REVA’s in-network model appealing, the medical-transport company was still in the process of moving some out-of-network business in-network, the source said.

An in-network model is attractive because it guarantees that each flight is covered by an insurance provider. That set REVA apart, as billing and pricing remain largely inconsistent throughout many other operators, a source previously said.

A sale to a strategic buyer may be more likely with the next attempt to sell, the source added.

The industry’s two large consolidators are KKR’s Air Medical Group Holdings and American Securities LLC’s Air Methods. In contrast to REVA and Angel Medflight, both are largely focused on air medical operations encompassing rotor-wing aircraft, or helicopters.

Representatives of Beekman and Harris Williams couldn’t immediately be reached on Monday.

Action Item: Get in touch with John Troiano, Beekman’s managing partner and CEO: jtroiano@thebeekmangroup.com

Austrian skier Matthias Lanzinger lies on a stretcher upon his arrival with an air-ambulance jet in Salzburg on March 6, 2008. Lanzinger, who is in stable condition, arrived back after undergoing an emergency amputation of his lower left leg on Tuesday in Oslo. Doctors said Lanzinger, who broke the leg in a World Cup Super G race in Norway on Sunday, might have died without the operation. Photo courtesy Reuters/Calle Toernstroem