Blog Coverage Air Methods to be Acquired by Private Equity Firm for Approximately $2.5 Billion

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LONDON, UK / ACCESSWIRE / March 15, 2017 / Active Wall St. blog coverage looks at the headline from Air Methods Corp. (NASDAQ: AIRM) as the Company announced on March 14, 2017, that it has entered into a definitive agreement to be acquired by affiliates of New York based private equity firm, American Securities LLC for a total enterprise value approximately $2.5 billion, including net debt. Register with us now for your free membership and blog access at:

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One of Air Methods’ competitors within the Air Services, Other space, AerCap Holdings N.V. (NYSE: AER), reported on February 21, 2017, its financial results for Q4 and full year 2016. AWS will be initiating a research report on AerCap in the coming days.

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Air Methods is the largest domestic air medical transport provider in the $5 billion air medical market, serving 48 states with over 300 bases of operations and one of the youngest fleets in the industry. Air Methods also maintains a leading position in the complementary air tourism business, with access to attractive fast-growing end markets. The Company’s multi-pronged strategy to drive long-term growth includes a focus on improving the utilization of its assets, growing the Company’s air medical footprint in underserved markets and increasing the revenue and profitability of the tourism operations.

Transaction Details

Under the terms of the transaction, American Securities will pay $43.00 for each outstanding share of Air Methods. The offered price is 3.9% above March 13, 2017’s closing price of $41.40 and represents a 20.4% premium to Air Methods’ stock price of $35.70 on January 31, 2017, prior to press speculation regarding a sale, and a 24.7% premium to 30-day volume-weighted average price of $34.49 as of the same date. The transaction was unanimously approved by Air Methods’ Board of Directors. In 2016, Air Methods recorded earnings of $97.9 million on approximately $1.17 billion in revenue.

The transaction will be completed through a cash tender offer for all of the outstanding common shares of Air Methods, followed by a merger in which remaining common shares of Air Methods would be converted into the right to receive the same $43 cash per share price paid in the tender offer. Air Methods’ Board of Directors unanimously approved the offer and recommended that Air Methods shareholders tender their shares in the offer. The transaction is conditioned upon satisfaction of the minimum tender condition, which requires that shares representing more than 50% of the Air Methods’ outstanding common shares be tendered, as well as other customary closing conditions, including expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is expected to close by the end of Q2 2017.

Commenting on the deal, Aaron Todd, Air Methods’ Chief Executive Officer stated:

“This transaction will enable us to continue to execute against our strategy and strengthen our market position as a global leader in air medical transportation and air tourism.”

Aaron Todd continued:

“American Securities offers us a great opportunity to continue to invest and pursue long-term growth with greater operational flexibility, and we look forward to working with such a sophisticated private equity investor. Importantly, patients, employees, customers and partners will continue to benefit as we execute against our strategy.”

“We strongly believe in Air Methods’ strategic direction and the opportunities to grow the Company’s leading positions in the attractive air medical and air tourism markets,” said Marc L. Saiontz, a Managing Director of American Securities, “We respect the company’s commitment to providing access to patients in the communities that need it the most, with a focus on quality of care and safety in aviation. We look forward to partnering with the Air Methods team to drive value.”

Stock Performance

On Tuesday, March 14, 2017, following the announcement, Air Methods’ share price finished the trading session at $43.00, advancing 3.86%. A total volume of 8.52 million shares exchanged hands, which was higher than the 3 months average volume of 520.87 thousand shares. The stock has rallied 30.70% and 33.33% in the last three months and past six months, respectively. Furthermore, since the start of the year, shares of the Company have surged 35.01%. The stock is trading at a PE ratio of 16.60 and currently has a market cap of $1.55 billion.

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