Marfin Investment Group Holdings S.A. ("MIG") announces the acquisition of approximately 49.99% of the equity capital of FLIGHT AMBULANCE INTERNATIONAL RENT-A-JET AKTIENGESELLSCHAFT ("FAI" or the "Company") from the Company's main shareholder Axtmann Beteiligungs GmbH for a consideration of euro 15 million (the "Transaction"). As part of the Transaction, MIG has retained a 2-year option to potentially increase its participation to 51% of the Company's share capital for an additional consideration of euro 2.5 million.
FAI, is one of the top 3 fixed-wing medical evacuation companies in Europe, one of the top 5 globally and one of the few approved air service providers for the worlds' largest Non-Governmental Organisations (NGOs). The Company is based in Nuremberg, Germany, and offers private aviation services to corporate, governmental and non-governmental organisations and individuals, specialising in medical evacuation.
Operating in high-margin niches of the aviation space, strong revenue visibility More than 75% of FAI's revenues come from medical evacuation activities, by and large through long-standing relationships and agreements with the world's largest insurance and assistance companies. The segment is by and large immune to fuel price, as the majority of the cost is passed on to clients. The remaining revenues pertain to corporate and private aviation activities, with the majority of those coming from the 4 outstanding contracts with the worlds' largest NGO.
Efficient fleet and fully fledged cost-effective owned fleet support capabilities FAI controls an efficient and reliable fleet of 7 Lear Jets (2 of which are of the type LJ35, 4 are LJ55 and 1 is LJ60. The Company also manages an additional 2 LJ 60 aircrafts. The fleet is based in the low-cost, 24/7 International Airport of Nuremberg, where FAI owns operation and maintenance facilities. The Company's significant operational expertise ensures a low cost base and very high fleet utilisation rates.
For 2008, the Company expects to achieve revenues of euro 26.0 million, EBITDA of euro 6.5 million and EBT of euro 4.6 million. This implies an acquisition EBITDA multiple of 4.9x for 2008E and 3.2x for 2009E.
As part of the Transaction and over the last 3 months, MIG performed to its satisfaction an extensive legal, financial and operational due diligence exercise.
Dr. Siegfried Axtmann, President of the Supervisory Board of FAI, commented on the completion of the Transaction:
"We are very happy to announce the beginning of our partnership with MIG. Today's announcement is a very important milestone in FAI's 22-year history. We at FAI are very proud of our reputation, credibility and operational expertise, some of the most important elements of differentiation vis-a-vis one's peers in a very competitive sector. We will continue to work hard and deliver customer service and financial performance and, together with our very strong partner, we look forward to a prosperous future."
Mr. Andreas Vgenopoulos, Executive Vice-Chairman of MIG, stated:
"We are delighted to announce an exciting investment in a very attractive industry. This transaction undoubtedly meets our investment criteria and has promising synergetic potential with MIG's Healthcare activities.
We would like to welcome Dr. Axtmann to the MIG family and we are very fortunate to have found a partner of his managerial capabilities, operational expertise and deep knowledge of the sector. We remain very cautious and disciplined in our investment approach, in line with our ahead-of-the-curve strategic repositioning more than a year ago. Today's announcement is testament that, despite the current market turmoil, MIG remains strategically focussed to exploit investment opportunities that arise in this challenging environment and create shareholder value."