Mergers & Acquisitions
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Exchange Income To Buy Regional One For Nearly $80 Mln - Quick Facts

Exchange Income Corp. (EIF) reported signing a stock purchase agreement to acquire all of the shares of Regional One, Inc., a privately-owned US company that provides aircraft and engine aftermarket parts to regional airline operators worldwide, for around $80 million. The transaction, which may close by April 1, 2013, is likely to be immediately accretive to the company's earnings per share and free cash flow per share.

According to the company, 25% of the consideration would be paid through the issuance of Exchange Income Corporation common shares; the balance will be financed using the Corporation's senior credit facility. This transaction contains earn out provisions which are contingent on Regional One achieving certain performance milestones in order for the maximum purchase price to be paid.

President and Chief Executive of Exchange Income said, "The acquisition of Regional One will provide product and geographical diversification of revenue and cash flow within our aviation segment and is strategic on a number of levels." He added, "Most notably, it provides a proxy for vertical integration into one of the major expense categories of our aviation segment. Equally important, it can generate offsetting cash flow to mitigate price increases in aircraft and parts. We look forward to welcoming Regional One into our operations."

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by RTT Staff Writer

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