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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 Crew Training International, Inc. (“CTI”), headquartered in Memphis, TN. The purchase price of US$45 million was funded by the issuance of US$7 million of EIC common shares to the vendor and cash in the amount of US$38 million that was available from the Corporation’s credit facility.
CTI has 30 years of experience developing and delivering training solutions for the US government and commercial applications. CTI’s primary customer is the US Department of Defense, including the US Air Force, the US Navy, and the US Marine Corps. CTI delivers training solutions for these customers across an array of aviation platforms and has in-depth experience in training pilots and sensor operators on both manned and unmanned aircraft. These services are delivered by CTI’s 500 employees on military bases throughout the US.
Mike Pyle, CEO of EIC, commented, “CTI is a market leader with superior management and a well-developed company culture making it an ideal company to join EIC. There is high demand for aviation training and we are eager to grow in this field. CTI’s leading capabilities, reputation, and presence in the US market, which have been developed over the last three decades, make this a very exciting acquisition. This transaction is accretive for our shareholders, and I am very pleased Alan and his executive team will continue leading this terrific business.”
Mr. Pyle added, “Aviation training and providing solutions to governments are services EIC understands well. The addition of CTI, expands on this expertise, adding new customers, capabilities, and platforms, including unmanned expertise. In addition, this acquisition will provide the foundation for EIC to expand its ISR operations to the US market. This is the first step for EIC to be able to leverage our leading ISR capabilities and expand in the future to serve the US Department of Defense.”
Alan Mullen, CTI’s Founder and CEO, stated, “I’m very proud of what we have created at CTI. Our people are exceptional, and we pride ourselves on delivering for our customers. It’s important to do what you say and to keep your word. I started this business with those ideals at the forefront and it was critical for me to find a partner who would preserve this commitment, as well as our culture and our reputation. EIC’s model is the right fit for our company, our employees and our customers. CTI can continue to deliver on our word and we are excited to work with the broader EIC aerospace and government contracting group to add additional services and value for our customers.”
Adam Terwin, Chief Corporate Development Officer of EIC said, “Government outsourcing of military training has increased throughout the world, driven by growing labor shortages, creating long-term robust demand for CTI’s service. CTI has developed great knowledge and experience in this field, specifically in military aviation. Their experience in training solutions, know how in US government contracting, and their robust business development capabilities have positioned them to expand their training solutions in aviation and into other areas. This includes recent contract wins with additional agencies in the US Department of Defense and in ancillary areas to aviation such as cyber training. We are excited Alan and his team will be staying on to lead CTI in this next phase of their growth.”
Mike Pyle concluded by saying, “The pandemic has challenged our business model, and I am exceptionally pleased with how we have met those challenges. 2021 was a busy year of organic and inorganic growth for EIC. This acquisition is the second acquisition since we reported our third quarter results. The other acquisition was Ryko Telecommunications Inc., a strategic addition to WesTower’s wireline construction and maintenance services offering in Western Canada, which was completed on December 1, 2021 for $14 million. This makes five acquisitions in 2021, which when combined with significant organic investment, positions us well for continued growth in 2022 and beyond.”
This press release was prepared and distributed by EIF
