BBA Aviation Buys New Base For Signature For USD16.2 Million
LONDON (Alliance News) - BBA Aviation PLC (LON:BBA) Monday said it has bought the fixed base operator assets of Wiggins Airways Inc from Ameriflight of the US for USD16.2 million in cash, on a cash- and debt-free basis, a deal it expects to add to earnings in the first full year of ownership.
In a statement, BBA said its Signature Flight Support business did the deal, which it expects to complete by the end of 2014 subject to customary approvals.
"The addition of this sole source location extends Signature's existing network in the New England area serving both the Boston market and the nearby resort locations. The (fixed base operator) has a 19 year residual lease term and consists of a passenger terminal and three hangars totaling 87,000 square feet as well as its own fuel farms," BBA said in a statement.
The facility also provides fuelling, deicing and other related services to commercial airlines at the airport, it added.
The acquisition is expected to be earnings enhancing in the first full year of ownership and meet BBA Aviation's return targets by year three, it said.
BBA Aviation shares were flat at 322.93 pence Monday morning.
By Steve McGrath; firstname.lastname@example.org; @stevemcgrath1
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