$3.7 Billion Pricetag Largest-Ever Oilfield Services Buyout

Aero-News has learned global offshore helicopter service provider CHC Helicopter Corporation will be acquired by a fund managed by First Reserve Corporation, a leading private equity firm that specializes in the energy industry. The all-cash transaction amounts to Canadian $3.7 billion ($3.656B US), making it the largest-ever buyout in the oilfield services industry.

"I'm glad to see that First Reserve recognized the value that was created in CHC over the years, and was able to translate that value into a fair offer for all shareholders," said CHC's Chairman of the Board, Mark Dobbin. "I'm also very pleased to see that First Reserve will carry on CHC's legacy of entrepreneurship, as it builds upon CHC's position as a world class helicopter company." 

"This partnership will help us realize our growth potential," said Sylvain Allard, President and Chief Executive Officer of CHC. "First Reserve is an investment company with deep knowledge of the energy industry and views CHC as a great investment platform. First Reserve has strong conviction in the merits of the strategy that has led to CHC's success and will work in partnership with us to continue to execute that same plan and achieve our long-term objectives."

Under the terms of the transaction, an affiliate of the First Reserve fund will acquire all outstanding Class A Subordinate Voting Shares and all of the outstanding Class B Multiple Voting Shares of CHC for Canadian $32.68 per Class A Share and Class B Share for an aggregate consideration of approximately Canadian $1.5 billion. Following completion of the transaction CHC's Class A shares and Class B shares will be de-listed and no longer traded publicly. CHC's headquarters will remain in Vancouver, Canada.

The board of directors of CHC unanimously approved the entry by CHC into the agreement, and recommended shareholders vote in favor of the transaction.

"CHC is an extraordinary company," said Mark McComiskey, Managing Director of First Reserve Corporation. "The European and global leader in oil and gas and search and rescue helicopter services, with the world's largest independent helicopter support business, CHC has a worldwide footprint, the best safety record in the industry and a dynamic management team executing an exciting growth strategy."

The transaction will be completed through a plan of arrangement under the provisions of the Canada Business Corporations Act, subject to the approval of the Supreme Court of British Columbia.  Shareholders will be asked to approve the transaction at a special meeting of shareholders, to be called as directed by the Court.  Details of the special meeting will be announced shortly.

CHC is the world's largest provider of helicopter services to the global offshore oil and gas industry, with aircraft operating in more than 30 countries worldwide, and regional headquarters in Aberdeen, Scotland, Stavanger, Norway and Vancouver, Canada.

FMI: www.chc.ca, www.frcorp.com