THE Bristow Helicopter Group, whose main operating base is at Aberdeen
airport, is once again a British-owned company after a #155m management
buy-out headed by Bryan Collins, managing director and chief executive,
and jointly arranged and led by Caledonia Investments and Morgan
Grenfell Development Capital. Negotiations culminating in the deal
(which in total amounts to #200m) lasted six months.
For the past year-and-a-half Bristow, the world's leading operator of
twin-engined helicopters, has been Swedish owned. The company's
2000-strong workforce will now be given the opportunity to take an
equity stake in the newly-formed holding company, initially 10% but with
the possibility of that rising to 16%.
Bristow was formerly a subsidiary of British & Commonwealth Holdings,
but was sold as part of the Bricom Group in the #405m 1988 management
buy-out. In July 1990, Bricom was acquired by Rochfield, a company owned
by a group of Scandinavian investors. It was their intention to dispose
of Bristow, which did not form part of their long-term strategic
objectives.
Currently, Bristow's worldwide operations involve over 200 helicopters
and 40 fixed wing aircraft. As well as its services to the offshore oil
industry, Bristow provides search and rescue services for HM Coastguard
and also the flying training of British army helicopter pilots.
Last year, its profits totalled #24.7m before tax with the company
little touched by the recession because it is largely oil based.
Caledonia Investments, the listed investment company in which the
Cayzer family has a substantial interest, and Morgan Grenfell
Development Capital, through its #145m management buy-out fund Morgan
Grenfell Capital Partners, have each underwritten 45% of the equity of a
new holding company formed to acquire Bristow. Caledonia's total
investment amounts to #33.5m in addition to which it has guaranteed a
#10m loan note issued by the new company. The debt part of the funding
has been arranged by NatWest Acquisition Finance Unit and underwritten
by National Westminster Bank and Bank of Scotland.
The overall #200m financing package, which includes facilities for
future expansion, will finance the buy-out, the acquisition of Air
Service Training, a flying college based in Perth, and provide funds for
a significant capital expenditure programme and associated working
capital.
Peter Buckley, chief executive and deputy chairman of Caledonia
Investments, is to be appointed chairman of Bristow's new holding
company and he will be joined by non-executive directors Robert Smith,
Norman Murray, deputy chief executive of Morgan Grenfell Development
Capital, and Jonathan Cartwright, a director of Caledonia Investments.
The executive directors will be Bryan Collins, Alan MacGregor, deputy
chief executive, and Stephen Palframan, finance director.
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