Bristow and Era to Merge
Bristow Group Inc. and Era Group Inc. have entered into a definitive agreement to combine the two companies in an all-stock transaction.
The combined company, which will be named Bristow, will strengthen its global leadership position with significant operations throughout the Americas, Nigeria, Norway, the United Kingdom and Australia for offshore aviation transportation and search and rescue solutions, according to a joint statement.
The combined firm is expected to achieve pro forma annual revenues of approximately $1.5 billion and run-rate adjusted EBITDA of approximately $240 million.
Following completion of the transaction, the combined company will be headquartered in Houston, Texas. Chris Bradshaw, president and CEO of Era, will become president and CEO of the combined company, which will have a nine-member board of directors, including seven members from Bristow and two members from Era.
“We believe this merger will create substantial value for the stakeholders of both companies,” Bradshaw, president and CEO of Era, said in a company statement.
“The identified cost synergies are significant and, combined with the strong pro forma balance sheet and absence of capital commitments, support robust free cash flow generation,” he added.
“This merger achieves more efficient absorption of the significant fixed costs required to run an air carrier and better positions the combined company to manage industry challenges,” Bradshaw continued.
L. Don Miller, president and CEO of Bristow, said, “Bristow and Era share complementary cultures built on an unwavering commitment to safety and quality through experienced, well-trained trained pilots, mechanics, engineers and support staff”.
“Merging these two companies will further build on that culture to create an even stronger, more integrated industry leader,” he added.
Bristow describes itself as the world’s leading provider of offshore oil and gas transportation, search and rescue and aircraft support services to government and civil organizations worldwide.
Era describes itself as one of the largest helicopter operators in the world and the longest serving helicopter transport operator in the U.S. Era’s helicopters are primarily used to transport personnel to, from and between offshore oil and gas production platforms, drilling rigs and other installations.
Both companies are based in Houston, Texas.
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