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Magellan Aerospace Corporation (Magellan) is pleased to announce that it has acquired all of the outstanding ordinary shares of Euravia Engineering & Supply Co. Limited (Euravia) for total net consideration of approximately $56.5 million (£30.0 million), net of cash acquired of $15.0 million (£8.0 million). The purchase price will be subject to final adjustments, including an amount based on earnings achieved by Euravia over the next two years. Magellan will fund the purchase through its current operating credit facilities.
Euravia is an aviation company that provides maintenance, repair and overhaul (MRO) solutions for a wide range of aircraft and helicopter gas turbine engines. Euravia, located in Kelbrook, Lancashire, U.K., has an established international reputation for delivering high quality, cost effective engine support. Euravia holds 19 international approvals supporting over 150 civil and defence customers in 50 different countries.
Euravia’s revenues for the fiscal year ending Dec. 31, 2014 were approximately $25.5 million (£14.0 million). Euravia’s operations will be managed through Magellan’s U.K. operations.
Dennis G. Mendoros, OBE, Euravia’s chief executive stated, “The acquisition by Magellan leads Euravia to the next development level, opening potential new business opportunities in North America and enabling us to offer enhanced customer support and dedicated aftersales service. In addition, Magellan’s global reach augments Euravia’s existing partnerships in the Middle East, Asia-Pacific, and across Europe.”
Magellan’s president and chief executive officer, Phillip Underwood commented, “The acquisition of Euravia complements Magellan’s existing repair and overhaul capability in North America. Euravia has an excellent reputation for providing high quality MRO capabilities, supporting a global customer base, and delivering exceptional customer service.”
