Premier Aviation Overhaul Centre Inc has agreed to acquire Discovery Air Technical Services, a subsidiary of Discovery Air Inc (TSX: DA.A). No financial terms were released. Premier Aviation, a Trois-Rivières, Québec-based airframe maintenance, repair and overhaul company, said the acquisition will increase its capacity in the regional aircraft market and enhance its growth opportunities. The deal is expected to wrap up by the end of August. Discovery Air, a specialty aviation company, is a portfolio investment of Canadian private equity firm Clairvest Group. Last month, Clairvest agreed to increase its stake in the business to as much as 82.7 percent of issued and outstanding common shares.
Premier Aviation will expand service capability through acquisition of the assets of Discovery Air Technical Services
TROIS-RIVIÈRES and QUEBEC CITY, QC, June 22, 2015 /CNW/ – Premier Aviation Overhaul Centre Inc. (“Premier”) and Discovery Air Technical Services (“DATS”), a wholly owned subsidiary of Discovery Air Inc. (TSX DA.A), today announced they have executed an offer to purchase pursuant to which Premier intends to acquire substantially all of the assets of DATS (the “Offer”). The Offer is conditional upon completion of due diligence by Premier, the satisfaction of certain conditions and the execution of a definitive agreement.
Premier Aviation is the industry’s largest Canadian owned airframe MRO currently operating two facilities in Canada and one in the United States. The asset purchase, which is expected to be completed by the end of August 2015, will add much-needed capacity to Premier’s current 700,000 sq. ft. of hangar and back shop space as well as contribute an additional 200,000 man-hours annually to the 1,000,000 saleable man-hours currently available.
Ronnie Di Bartolo, Premier’s President and CEO commented, “This is one more significant step in our strategic growth plan. This is a tremendous opportunity to expand Premier’s reach, by adding the hangar capacity and tooling required to satisfy Premier’s continuing growth and our growing customer base. The DATS facility’s focus and recognized expertise on regional aircraft will help provide the capacity Premier needs in this growing segment of our market.” Mr. Di Bartolo continued, “Having a highly talented and well-trained workforce is the foundation of Premier. We have the utmost respect for the DATS personnel, and we look forward to welcoming them to the Premier team.” This asset purchase represents a continuing commitment to aerospace in Quebec and further strengthens Premier’s commitment to its current and future clientele. The industry can continue to count on the Premier team, its capabilities, flexibility and cost-effectiveness.
Discovery Air Technical Services’ President, Jean-Pierre Bastien stated “This transaction, positions Premier as an even stronger player in the Regional aircraft market. With additional capacity within a currently operating facility Premier can hit the ground running in its drive to further expand its regional aircraft business. This transaction if completed, will make Premier an even larger player in regional, narrow-body and wide-body aircraft heavy maintenance and paint.”
About Premier Aviation
Premier Aviation is the largest Canadian-owned aircraft Maintenance, Repair and Overhaul (MRO) and aircraft painting company in North America, with facilities in, Trois-Rivières, Quebec, Canada, Windsor, Ontario, Canada and Rome, New York, United States. Since its inception in 2002, the company has maintained a steady growth of clients and services. For more information on Premier Aviation, visit www.premieraviation.ca.
About Discovery Air Technical Services
Discovery Air Technical Services Inc. is a wholly-owned subsidiary of Discovery Air, Inc., a Canadian specialty aviation company. DATS is an MRO company, focusing on regional aircraft overhaul and modification.
For further information, please contact:
Premier Aviation Overhaul Centre Inc.
VP, Marketing, Sales & Service
819 377-4500 ext. 398
About Discovery Air and Its Subsidiaries
Discovery Air Inc. provides safe and reliable aviation and logistics services in challenging environments. We operate approximately 150 aircraft with our 900 team members, delivering airborne training to international militaries; medevac equipped aircraft services; airborne fire services; helicopter operations; fixed-wing air charter services; expediting and logistics support; and a range of maintenance, repair, overhaul, modification, engineering and certification services.
Discovery Air’s Class A common voting shares and unsecured convertible debentures trade on the Toronto Stock Exchange (symbols DA.A and DA.DB.A, respectively).
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This news release includes forward-looking statements (as defined in applicable securities laws) regarding Discovery Air and/or its subsidiaries. Forward-looking statements by definition are based on assumptions and, as a result, are subject to risks and uncertainties. As a result of such risks and uncertainties, actual results may differ materially from those discussed in forward-looking statements, and readers should not place undue reliance on such statements. For a more detailed discussion of forward-looking statements and the risks associated therewith, please refer to the statement regarding forward-looking statements contained in the Management’s Discussion and Analysis section of Discovery Air’s financial statements for the fiscal year ended January 31, 2015, which are available on Discovery Air’s web site at www.discoveryair.com and on SEDAR at www.sedar.com.
Forward-looking statements represent expectations as of the date they are made, and Discovery Air disclaims any intention or obligation to update or revise any forward-looking statements it may make, whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
SOURCE Discovery Air Inc.
For further information: Sheila Venman, Discovery Air Inc., VP, Human Resources & Communications, Sheila.Venman@discoveryair.com, 866-903-3247
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