Exchange Income Corporation Adds Helo Service To A Growing Aviation Portfolio

Exchange Income Corporation has signed a letter of intent to acquire the operations and assets of Custom Helicopters, a privately-owned provider of helicopter-based aviation services in Manitoba and Nunavut.

The acquisition is valued at $29 million, and will be paid through a combination of cash and the issuance of the Corporation’s common shares. The acquisition is expected to be immediately accretive to Exchange’s earnings per share and free cash flow per share. Pending final due diligence and satisfaction of typical conditions, including regulatory approval, the transaction is expected to close in the first quarter of 2012.

“We believe that market conditions are favorable for us to begin to deploy some of the more than $200 million we have available to support our disciplined acquisition strategy,” stated Mr. Mike Pyle, President and CEO of Exchange Income Corporation. “Custom Helicopters represents a strategic acquisition as it allows us to enter a new segment of the aviation market, one with strong and sustainable margins. Consistent with our business model, Custom’s senior management will be retained through long-term services contracts. We look forward to welcoming Custom Helicopters into Exchange’s growing Aviation segment.”

Jim Hawes, Founder and President of Custom Helicopters, stated, “We look forward to enhancing the business opportunities of Custom Helicopters with Exchange’s financial resources and through operational synergies with Exchange’s other aviation companies. We look forward to tapping into Exchange’s strong relationships with northern and First Nation communities, which will help Custom Helicopters attain new levels of success.”

FMI: www.customheli.com, www.exchangeincomecorp.ca