Air Methods Buys Sundance Helicopter Tour Co. for $44 Million
On Friday, air medical-evac specialist Air Methods , announced it has agreed to acquire all outstanding shares of capital stock of Sundance Helicopters, a helicopter tour operator based in Las Vegas that specializes in aerial tours of the Grand Canyon. With Sundance comes its fleet of 22 Eurocopter AS350 and EC130 helicopters, and a revenue stream of approximately $52 million annually. Air Methods says it "believes this acquisition will be accretive to earnings per share."
Air Methods will pay $44 million for Sundance, in cash, and expects to close this acquisition on Dec. 31. The company recently advised that it would be adding a new loan facility to its existing credit line in order to facilitate a planned $7-a-share special dividend. The company did not clarify whether it would draw on either of these credit lines to help finance the Sundance acquisition.
Air Methods shares were up 1.8% on the news, at $115.87.
The article Air Methods Buys Sundance Helicopter Tour Co. for $44 Million originally appeared on Fool.com.Fool contributor Rich Smith and The Motley Fool have no positions in the stocks mentioned above. Motley Fool newsletter services recommend 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 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.