Portland's Erickson Air-Crane buys Evergreen Helicopters for $250 million
By Mike Francis, The Oregonian The Oregonian
on March 19, 2013 at 5:29 PM, updated March 19, 2013 at 5:36 PM Print
McMinnville-based Evergreen International Aviation has sold its helicopter company to Portland's Erickson Air-Crane Inc. for $250 million in cash and notes, Erickson announced Tuesday.
Former employees said Evergreen, which has been buffeted by complaints, lawsuits, a state investigation of its affiliated non-profit and cash flow difficulties, has been working to sell the helicopter business for some time. Some they still haven't been paid what they were owed and have filed complaints with Oregon Bureau of Labor and Industries. They said they hoped the sale means they will get the money they are owed.
Evergreen is a privately owned, diversified aviation services company and the helicopter subsidiary has long been a core business. Evergreen's website says the helicopter business started in 1960. Its helicopters have been used in construction, fire-fighting, cargo transport and disaster relief.
Erickson's announcement said Evergreen Helicopters had unaudited revenues of $196 million last year, and it said the company had adjusted earnings before interest, taxes, depreciation and amortization of $56.2 million. Erickson said the deal is for 64 aircraft, including some fixed-wing aircraft.
Erickson Air-Crane is a publicly owned manufacturer of heavy-lift helicopters with its primary manufacturing plant in Central Point, Ore. It earned $15.6 million last year on revenues of $180.8 million. It benefited from additional firefighting contracts with the U.S. Forest Service, San Diego Gas & Electric and an oil-and-gas construction contract in Peru. It went public last year, generating $31.5 million in net proceeds. Its shares closed Tuesday at $14.13, up 37 cents, but rose sharply after hours to $16.23.
Along with the Evergreen deal, which is expected to close in the second quarter, Erickson is acquiring a Brazilian helicopter company in connection with a three-year cargo and transportation contract in the Amazon.
Erickson said it is buying Evergreen Helicopters from Evergreen International Aviation for $185 million in cash, $17.5 million in unsecured promissory notes issued by Erickson Air-Crane, and about 4 million convertible preferred shares of Erickson Air-Crane valued at $47.5 million. Erickson said it will seek shareholder approval to convert the shares to common shares after the acquisition.
In a prepared statement Tuesday, Erickson CEO Udo Rieder said he expects the acquisition to immediately boost Erickson's earning.
"At a purchase price multiple of less than five times (Evergreen Helicopter's) 2012 Adjusted EBITDA, the acquisition of EHI is expected to be immediately accretive to EAC's earnings per share."
When the transactions are finished, Erickson will operate a fleet of 100 aircraft, the company said.
-Mike Francis
By Mike Francis, The Oregonian The Oregonian on March 19, 2013 at 5:29 PM, updated March 19, 2013 at 5:36 PM Print
McMinnville-based Evergreen International Aviation has sold its helicopter company to Portland's Erickson Air-Crane Inc. for $250 million in cash and notes, Erickson announced Tuesday.
Former employees said Evergreen, which has been buffeted by complaints, lawsuits, a state investigation of its affiliated non-profit and cash flow difficulties, has been working to sell the helicopter business for some time. Some they still haven't been paid what they were owed and have filed complaints with Oregon Bureau of Labor and Industries. They said they hoped the sale means they will get the money they are owed.
Evergreen is a privately owned, diversified aviation services company and the helicopter subsidiary has long been a core business. Evergreen's website says the helicopter business started in 1960. Its helicopters have been used in construction, fire-fighting, cargo transport and disaster relief.
Erickson's announcement said Evergreen Helicopters had unaudited revenues of $196 million last year, and it said the company had adjusted earnings before interest, taxes, depreciation and amortization of $56.2 million. Erickson said the deal is for 64 aircraft, including some fixed-wing aircraft.
Erickson Air-Crane is a publicly owned manufacturer of heavy-lift helicopters with its primary manufacturing plant in Central Point, Ore. It earned $15.6 million last year on revenues of $180.8 million. It benefited from additional firefighting contracts with the U.S. Forest Service, San Diego Gas & Electric and an oil-and-gas construction contract in Peru. It went public last year, generating $31.5 million in net proceeds. Its shares closed Tuesday at $14.13, up 37 cents, but rose sharply after hours to $16.23.
Along with the Evergreen deal, which is expected to close in the second quarter, Erickson is acquiring a Brazilian helicopter company in connection with a three-year cargo and transportation contract in the Amazon.
Erickson said it is buying Evergreen Helicopters from Evergreen International Aviation for $185 million in cash, $17.5 million in unsecured promissory notes issued by Erickson Air-Crane, and about 4 million convertible preferred shares of Erickson Air-Crane valued at $47.5 million. Erickson said it will seek shareholder approval to convert the shares to common shares after the acquisition.
In a prepared statement Tuesday, Erickson CEO Udo Rieder said he expects the acquisition to immediately boost Erickson's earning.
"At a purchase price multiple of less than five times (Evergreen Helicopter's) 2012 Adjusted EBITDA, the acquisition of EHI is expected to be immediately accretive to EAC's earnings per share."
When the transactions are finished, Erickson will operate a fleet of 100 aircraft, the company said.
-Mike Francis
Makes up for all the time in the Middle East. One last trip before I get out of here. I hope.
