Clayton, Dubilier & Rice has completed its investment in CHC Group, a commercial operator of helicopters. CHC plans to use proceeds from the investment primarily to reduce debt and other fixed charges.
CHC Group provides helicopter flight services to oil and gas companies and government search-and-rescue agencies. The company also provides helicopter maintenance, repair and overhaul services through its Heli-One segment. CHC Group operates 233 aircraft in about 30 countries around the world and is headquartered in Richmond, BC (www.chc.ca).
With the closing of the transaction, CD&R Operating Partner John Krenicki, a former vice chairman of General Electric and president and chief executive officer of GE Energy, will become chairman of the board of CHC. CD&R will also appoint three additional members to CHC’s board.
“CHC’s ability to serve its customers globally and its record of safety, reliability and aircraft availability set it apart from other companies,” said Mr. Krenicki. “We are excited about the opportunity to work with management to continue this focus on safety and customer service and to build on the company’s strong competitive position.”
CD&R will have a 45-percent ownership position in CHC Group on an as-converted. First Reserve Corporation, which purchased CHC in 2008, will retain approximately 29-percent ownership in CHC.
Clayton, Dubilier & Rice focuses on producing financial returns through building stronger more profitable businesses. Since inception, the firm has managed the investment of more than $19 billion in 62 businesses representing a range of industries with an aggregate transaction value of approximately $90 billion. Founded in 1978, Clayton, Dubilier & Rice is based in New York and London (www.cdr-inc.com).
First Reserve is a private equity firm with a focus on the energy industry. First Reserve has completed more than 475 transactions (including platform investments and add-on acquisitions) on six continents. Its portfolio companies operate in approximately 50 countries and span the energy spectrum from upstream oil and gas to midstream and downstream, including resources, equipment and services and infrastructure. The firm was founded in 1983 and has offices in Houston, TX; Greenwich, CT; London, UK and Hong Kong (www.firstreserve.com).
2014 PEPD • Private Equity’s Leading News Magazine • 12-16-14