Erickson Air-Crane has executed a binding term sheet to acquire the Air Amazonia aerial services business from Brazilian oil and gas exploration and production firm HRT Partcipacoes em Petroleo. The move supersedes a non-binding letter of intent Erickson submitted in September 2012.
“We are very excited to have reached this milestone in our efforts to soon expand our presence in the fast-growing oil and gas market in South and Central America through this deal,” said Erickson president and CEO Udo Rieder. “Our experience in that market has brought us non-seasonal, profitable revenue streams and illustrated significant expansion opportunities.”
The agreement commits both parties to work in good faith toward Erickson’s acquisition of Air Amazonia, with an agreed-upon transaction price of between $65 and $75 million. The deal includes the operator’s fleet of five Bell 212s, seven Sikorsky S-61s and two AS350s.
Under terms of the binding term sheet, Erickson will also enter into a three-year contract with HRT to use a portion of that fleet to continue providing aerial services in the region, leaving the balance of those helicopters available to support Erickson’s business in other areas. o