Air Methods Buys Blue Hawaiian

Before you go, we thought you'd like these...
Before you go close icon

Englewood, Colo.-based Air Methods is expanding its operations in ... Hawaii.

On Monday, the helicopter med-evac company announced that it has signed a definitive agreement to buy helicopter tour operator Blue Hawaiian Helicopters and its fleet of 24 Eurocopter AS350 and EC130 helicopters for an undisclosed sum.

Blue Hawaiian is described as "the premier helicopter tour company in the State of Hawaii, offering a diverse portfolio of twelve scheduled tours on five of Hawaii's six tourist islands." It generated $47 million in revenues in 2012, an amount equal to 5.4% of Air Methods' trailing revenues.

In a statement, Air Methods noted that it expects the acquisition to be accretive to earnings per share after it closes later this quarter. Moreover, the company says Blue Hawaiian should be about as profitable for Air Methods as was its previous acquisition, Sundance Helicopters -- which last quarter posted a profit margin of nearly 24% on its revenues, significantly above Air Methods' own operating profit margin of 16.4%.

In spite of this good news, investors left Air Methods stock unchanged in Monday trading. It opened at $52.14 per share -- and it closed there, too.

The article Air Methods Buys Blue Hawaiian originally appeared on

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Air Methods. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

People are Reading