Aircraft Belts Inc. is pleased to announce the acquisition of its parent company Firstmark Corp.
BBA Aviation (the “Group”), a market-leading provider of global aviation support and aftermarket services, is pleased to announce the acquisition of Firstmark Corp (“Firstmark”), an aerospace focused aftermarket service provider, for a consideration of $97m. This business will be part of Ontic, our Aftermarket Services business, under Gareth Hall’s leadership.
Firstmark is a leading provider of highly engineered, proprietary components and subsystems for the aerospace and defence industries. The company employs over 70 people and has locations in Creedmoor, North Carolina and Plainview, New York and will expand Ontic’s US footprint to the East Coast, closer to key OEM partners and customers. It will be highly complementary to Ontic’s existing sites in Chatsworth, California, Cheltenham in the UK and Singapore.
The acquisition enhances Ontic’s exposure to the commercial and military aerospace markets, providing access to a range of growth opportunities across various established strategic platforms, with a significant installed base, high utilisation rates and extended in-service lives.
The $97m consideration represents an expected year one EBITDA multiple of 11.1x before acquisition related expenses of $1.6m. Firstmark is expected to contribute revenue of around $27m in its first full year of ownership.
The acquisition is subject to certain governmental and regulatory approvals and is expected to complete late in 2018.
Mark Johnstone, BBA Aviation Chief Executive commented “We are pleased to have reached an agreement to acquire Firstmark. This acquisition fully supports the strategic growth of Ontic by expanding the portfolio of proprietary products on established civil and military aircraft platforms and adding footprint on the US East Coast.”
BBA Aviation plc
David Crook, Group Finance Director
Kate Moy, Head of Investor Relations and Communications
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