$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.