Air Methods & Rocky merged
Finalizing an acquisition process long under way, leading aeromedical transport operator Air Methods of Denver acquired Rocky Mountain Holdings (RMH) of Provo, Utah, owner of Rocky Mountain Helicopters, itself a major aeromedical operator. Under the terms of a deal completed on October 17, Air Methods must pay a cash purchase price of $28 million for 100 percent of RMH’s equity, an amount that was later increased to $33.6 million to reflect changes to the net equity recorded since last December 31.
Assumed long-term debt and outstanding balances on RMH’s working capital line of credit, net of cash, aggregated to $36.2 million as of last Sept. 30. Additional consideration of up to $2.6 million is possible through earn-out provisions set forth in the definitive purchase agreement, which, if earned, would be paid out over the next several years.
Unedited financial results for RMH over the 12 months ending last September 30 showed a net income of $7 million from revenues of $98.9 million.
Some Layoffs Inevitable
Air Methods chairman and CEO George Belsey said integration of the two former aeromedical rivals would continue under a prearranged plan over the next two quarters. As far as staffing and possible layoffs as a result of the acquisition are concerned, “It’s too early to say,” Air Methods CFO Aaron Todd told AIN. “While we have no plans to lay off rank-and-file workers, there will be some adjustments in senior staff.”
Air Methods’ acquisition of Rocky Mountain Helicopters comes as the latest move in a trend toward consolidation that is reshaping the civil helicopter world.
RMH will continue to use the Rocky Mountain Helicopters trade name for that operator’s business. The buyout makes the combined Air Methods/RMH fleet of some 134 rotorcraft and 13 fixed-wing aircraft the world’s largest civil aeromedical operation.