Acquires Carson Air Ltd., the largest
provider of fixed wing air ambulance services in B.C.
WINNIPEG, MB, July 5, 2021 /CNW/ - Exchange Income Corporation
(TSX: EIF) ("EIC" or the "Corporation") a diversified,
acquisition-oriented company focused on opportunities in the
aviation, aerospace and manufacturing sectors, announced today it
has acquired Carson Air Ltd. ("Carson Air") headquartered in
Kelowna, B.C. The purchase price
of $61 million was funded by issuance
of $3 million of EIC common shares to
the vendor and cash in the amount of $58
million that was available from the Corporation's credit
facility.
EIC also announced it has entered into additional non-binding
letters of intent to acquire three unrelated companies that will
tuck-into and expand operations within its existing manufacturing
and aviation segments. In aggregate, the four transactions have a
combined purchase price of $114
million, funded with $102
million in cash and $12
million of EIC shares. This group of transactions would be
accretive on a per share basis, even if funded on a pure equity
basis, and would create strategic value for our existing
operations. While due diligence is not yet complete and the
transactions could be delayed or cancelled, the Corporation expects
to close them over the next ninety days.
Carson Air was established in 1990 and has a long history of
being the primary provider of fixed wing air ambulance services in
B.C. It has eight fixed wing aircraft providing contracted air
ambulance services within B.C. from operating bases in Kelowna and Vancouver. In addition to air ambulance
services, which is Carson Air's primary business, it provides
dedicated cargo services in B.C. and Alberta and operates a flight school, Southern
Interior Flight Centre.
Mike Pyle, CEO of EIC, commented,
"When we are assessing acquisition opportunities, superior
management, company culture, industry reputation and operational
excellence are of paramount importance. Carson Air checks all the
boxes in these areas. Growth is important but it must be done
prudently with the right companies and I think that bringing B.C.'s
undisputed medevac leader into the EIC fold will further enhance
our reputation as the best in Canada at what we do."
Mr. Pyle added, "The acquisition of Carson Air further
solidifies EIC as Canada's
pre-eminent provider of medevac services. This acquisition expands
the geographic footprint of our medevac services into B.C. We are
proud to offer these services to remote and Indigenous communities
from coast to coast to coast."
"We are very familiar with EIC's medevac operations,
particularly within western Canada
and Nunavut" stated Kevin Carson, CEO and majority owner of Carson
Air. "EIC has a proven reputation within the Canadian medevac
industry, and I am convinced this will be a great fit for Carson
Air both operationally and culturally."
Kevin Hillier, Carson Air's
President, added, "Culture is paramount at Carson Air and when the
current owners decided to sell the business, they wanted to ensure
this was preserved to ensure a smooth succession and strengthen the
company's long-term future. Carson Air is a family run company and
it's very important to us that we are able to maintain our unique
culture, as it's critical to our success. EIC's approach resonated
with how we envision the future of Carson Air and how we want to
treat our valued employees. EIC's track record speaks for itself
and we are confident that this is the right fit for our company,
our employees and our customers."
Adam Terwin, Chief Corporate
Development Officer of EIC said, "With the impact of the pandemic,
our team focused on opportunities in businesses and industries in
which we already excel, such as medevac operations. The acquisition
of Carson Air provides us with further medevac capability and
expertise, while broadening our geographic coverage. With the
Carson Air acquisition now completed, we will finish our due
diligence on the other targets that will similarly expand our
operations or vertically integrate with them to increase our scope
of operations."
Mike Pyle concluded by saying,
"If nothing else, the pandemic has reinforced to us that our
diversified business model, focused on strong niche operating
businesses, is very resilient and we have extremely talented and
dedicated employees who are exceptional at executing the business
model. As such, it makes sense we look for opportunities to expand
upon these operations. We have shown we are able to grow
organically, as evidenced by PAL Aerospace expanding its
geographical presence and winning the surveillance contract with
the Netherlands Government. Now, we are doing it through
acquisition with Carson Air. Assuming that the three additional
transactions close, all the funds from our most recent share
offering will have been fully and accretively deployed. We will
continue to focus on accretive, profitable expansion opportunities
through both acquisition and internal growth investment."
About Exchange Income Corporation
Exchange Income Corporation is a diversified
acquisition-oriented company, focused in two sectors: aerospace
& aviation services and equipment, and manufacturing. The
Corporation uses a disciplined acquisition strategy to identify
already profitable, well-established companies that have strong
management teams, generate steady cash flow, operate in niche
markets and have opportunities for organic growth. For more
information on the Corporation, please visit
www.ExchangeIncomeCorp.ca. Additional information relating to the
Corporation, including all public filings, is available on SEDAR
(www.sedar.com).
About Carson Air
Founded in 1990, Carson Air is the primary provider of fixed
wing air ambulance services in BC. The company provides fixed wing
air ambulance services, air cargo services, and operates a flight
school. These services are collectively provided from its three
bases in Kelowna, B.C.,
Vancouver, B.C., and Calgary, AB.
Caution Concerning Forward-looking Statements
The statements contained in this news release that are
forward-looking are based on current expectations and are subject
to a number of uncertainties and risks, and actual results may
differ materially. These uncertainties and risks include, but are
not limited to, COVID-19 and pandemic related risks, the dependence
of Exchange Income Corporation on the operations and assets
currently owned by it, the degree to which its subsidiaries are
leveraged, the fact that cash distributions are not guaranteed and
will fluctuate with the Corporation's financial performance,
dilution, restrictions on potential future growth, the risk of
shareholder liability, competitive pressures (including price
competition), changes in market activity, the cyclicality of the
industries, seasonality of the businesses, poor weather conditions,
and foreign currency fluctuations, legal proceedings, commodity
prices and raw material exposure, dependence on key personnel, and
environmental, health and safety and other regulatory requirements.
Except as required by Canadian Securities Law, the Corporation does
not undertake to update any forward-looking statements; such
statements speak only as of the date made. Further information
about these and other risks and uncertainties can be found in the
disclosure documents filed by Exchange Income Corporation with the
securities regulatory authorities, available at
www.sedar.com.
SOURCE Exchange Income Corporation
