TORONTO, May 15, 2015 /PRNewswire/ --
Magellan Aerospace Corporation ("Magellan") is pleased to
announce today that it has acquired all of the outstanding ordinary
shares of Euravia Engineering & Supply Co. Limited ("Euravia")
for total net consideration of approximately $56.5 million (£30.0 million), net of cash
acquired of $15.0 million (£8.0
million). The purchase price will be subject to final adjustments,
including an amount based on earnings achieved by Euravia over the
next two years. Magellan will fund the purchase through its current
operating credit facilities.
Euravia is an aviation company that provides maintenance, repair
and overhaul (MRO) solutions for a wide range of aircraft and
helicopter gas turbine engines. Euravia, located in Kelbrook,
Lancashire, UK, has an established
international reputation for delivering high quality, cost
effective engine support. Euravia holds 19 international approvals
supporting over 150 civil and defence customers in 50 different
countries.
Euravia's revenues for the fiscal year ending December 31, 2014 were approximately $25.5 million (£14.0 million). Euravia's
operations will be managed through Magellan's UK operations.
Dennis G. Mendoros, OBE, Euravia's Chief Executive
stated, "The acquisition by Magellan leads Euravia to the next
development level, opening potential new business opportunities in
North America and enabling us to
offer enhanced customer support and dedicated aftersales service.
In addition, Magellan's global reach augments Euravia's existing
partnerships in the Middle East,
Asia-Pacific, and across
Europe."
Magellan's President and Chief Executive Officer, Phillip Underwood commented, "The acquisition of
Euravia complements Magellan's existing repair and overhaul
capability in North America.
Euravia has an excellent reputation for providing high quality MRO
capabilities, supporting a global customer base, and delivering
exceptional customer service."
About Magellan Aerospace:
Magellan Aerospace is one of the world's most integrated
aerospace industry suppliers. Magellan engineers and manufactures
aeroengine and aerostructure assemblies and components for
aerospace markets, advanced products for military and space
markets, and complementary specialty products. Magellan is a public
company whose shares trade on the Toronto Stock Exchange (TSX:
MAL), with operating units throughout Canada, the United
States, the United Kingdom,
Poland and India.
Forward Looking Statement:
This press release contains information and statements of a
forward-looking nature and is based on assumptions and
uncertainties as well as on management's reasonable evaluation of
future events related to the anticipated benefits to be achieved by
Magellan and Euravia as a result of Magellan's acquisition of
Euravia. Such forward-looking statements are based on a number of
assumptions including the ability of Magellan and Euravia to
integrate their operations and achieve the synergies contemplated.
These statements are not guarantees of future performance
and involve risks and uncertainties that are difficult
to predict, and/or are beyond Magellan's control including the risk
that Magellan and Euravia do not achieve the anticipated benefits
of the acquisition as contemplated and the risks and uncertainties
set forth in Magellan's Annual Information Form filed on SEDAR
athttp://www.sedar.com which risks
and uncertainties are incorporated by reference in this press
release. A number of important factors could cause actual outcomes
and results to differ materially from those expressed in these
forward-looking statements.Furthermore, the forward-looking
statements contained herein are made as at the date hereof and
Magellan does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a
result of new information, future events or otherwise, except as
may be required by applicable securities laws.
Mr. Phillip Underwood, President
and Chief Executive Officer, Magellan Aerospace, Ph. 1 905 677
1889; Mr. John Dekker, Chief
Financial Officer and Corporate Secretary, Magellan Aerospace, Ph.
+1-905-677-1889