Air Methods, a provider of air medical transportation and air tourism, has agreed to be acquired by American Securities for $43 per share in cash or at an enterprise value of approximately $2.5 billion. Air Methods had $1.2 billion of revenue in 2016 and $286 million of EBITDA.
Air Methods (NASDAQ:AIRM) operates through three divisions. The Air Medical Services division is considered to be the largest provider of air medical transport services in the United
States. This division serves 48 states with over 300 bases of operations. The Tourism division is comprised of Sundance Helicopters and Blue Hawaiian Helicopters which provide helicopter tours and charter flights in the Las Vegas/Grand Canyon region and Hawaii.
The third division, United Rotorcraft, specializes in the design and manufacture of aeromedical and aerospace technology. In total, Air Methods’ fleet of owned, leased or maintained aircraft features approximately 500 helicopters and fixed wing aircraft. The company was founded by Roy Morgan in 1980 and is headquartered near Denver in Englewood, CO (www.airmethods.com).
“We strongly believe in Air Methods’ strategic direction and the opportunities to grow the company’s leading positions in the attractive air medical and air tourism markets,” said Marc Saiontz, a Managing Director of American Securities. “We respect the company’s commitment to providing access to patients in the communities that need it the most, with a focus on quality of care and safety in aviation. We look forward to partnering with the Air Methods team to drive value.”
American Securities invests in businesses with $200 million to $2 billion of revenue and $50 million to $200 million of EBITDA. Sectors of interest include industrial manufacturing, specialty chemicals, aerospace and defense, energy, business services, healthcare, media, restaurants, and consumer products. The firm has more than $15 billion of capital under management and has offices in New York and Shanghai (www.american-securities.com).
“This transaction will enable us to continue to execute our strategy and strengthen our market position as a leader in air medical transportation and air tourism,” said Aaron Todd, Chief Executive Officer. “American Securities offers us a great opportunity to continue to invest and pursue long-term growth with greater operational flexibility, and we look forward to working with such a sophisticated private equity investor.”
Goldman, Sachs & Co. and Centerview Partners are the financial advisors to Air Methods. The transaction is expected to close by the end of June 2017.
© 2017 Private Equity Professional | March 15, 2017
