North American Company Expands Into The Southern
Hemisphere
The largest helicopter transportation services company
operating in Canada said Thursday that its wholly-owned subsidiary,
Canadian Helicopters Limited (CHL), has entered into a sale and
purchase agreement to acquire the assets of Helicopters (N.Z.)
Limited, including the shares of Helicopters (Australia) Pty Ltd
and other active subsidiary companies, as well as the assets of
Helicopter Nominees Limited (HNZ). The parent company, Canadian
Helicopters Group Inc., said the transaction purchase
price is approximately $127 million on a debt free and cash free
basis, and is subject to customary adjustments.
HNZ has operated for 55 years in New Zealand, Australia and
Asia. HNZ’s head office is in Nelson, New Zealand, and the
company has 11 bases to support operations across New Zealand,
Australia, Laos and Cambodia. HNZ also has a corporate office in
Perth to support its significant Australian operations. HNZ has 181
employees, a modern fleet of 33 helicopters, and revenue of
approximately $66 million.
“The acquisition of HNZ represents a transformational
investment for CHL and in a part of the world that complements
CHL’s activities in the northern hemisphere," said Don Wall,
President and Chief Executive Officer of Canadian Helicopters.
Acquiring HNZ will assist in providing greater stability as it
extends the arm of CHL’s existing operations in Canada, the
United States and Afghanistan. HNZ has excellent people and a very
strong brand particularly with respect to safe operations, and will
be a significant part of CHL’s growth plan as we look to the
future. Like CHL , HNZ operates in challenging environments and
positions itself as providing “excellence in the
extremes”. We look forward to supporting the employees in New
Zealand, Australia and elsewhere in the region in continuing to
provide “best in class” service.”
“HNZ has grown from a local New Zealand based company to
an internationally respected operator involved in all aspects of
helicopter operations. We welcome the opportunity to continue to
maintain our high level of quality services and continue to grow
and enhance the business for all stakeholders, including our
clients and staff, in the future through Canadian
Helicopters’ ownership” said HNZ’s CEO Brian
McDonald.
It is anticipated that HNZ’s entire team will continue to
support the HNZ business following the closing of the Transaction.
The company's client base includes Shell Todd Oil Services,
Australia Worldwide Exploration, OMV Maari Field, Origin Energy
Resources, Rio Tinto, the US Department of Defence, the Australian
National Aerial Firefighting Centre, ESSO, and National Antarctic
programs, among others.
CHL says HNZ has existing relationships and demonstrated
capabilities in strategic locations which provide an excellent
platform to compete for contracts in Australia and other parts of
the Asia Pacific region. In addition, they believe HNZ is well
positioned to capitalize on new opportunities in that country.
CHL’s domestic flying operations are subject to
predictable seasonal fluctuations due to variations in daylight
hours and changes in weather conditions, with the highest domestic
demand occurring from May to October. Because it is geographically
located in the southern hemisphere, HNZ’s business will be
counter seasonal to CHL’s. For example, HNZ’s Antarctic
expedition and fire related services are provided from December to
April, a period during which the demand for CHL’s services is
at its lowest.
The Transaction will be funded with a combination of cash on
hand and bank debt. To finance the Transaction, CHL has secured a
commitment from National Bank of Canada and Caisse centrale
Desjardins for a revolving credit facility totaling nearly $130
million. The new credit facility will replace CHL’s existing
revolving credit facility. The Transaction is expected to close in
the third quarter of the 2011 calendar year. The Transaction is
subject to regulatory approvals and other customary closing
conditions, including consent of the New Zealand Overseas
Investment Office under the Overseas Investment Act 2005, and
obtaining an Air Operating Certificate from the New Zealand Civil
Aviation Authority.