BBA Aviation to buy Firstmark for $97m

18th Sep 2018 07:13

(Sharecast News) - BBA Aviation has announced the acquisition of Firstmark, an aerospace focused aftermarket service provider, for $97m.This business, which is expected to contribute revenue of around $27m in its first full year of ownership, will become part of BBA's aftermarket services arm, Ontic.Based in the US with more than 70 employees, Firstmark is a provider of highly engineered, proprietary components and subsystems for the aerospace and defence industries. The company has locations in Creedmoor, North Carolina and Plainview, New York and will expand Ontic's US footprint to the East Coast, closer to key original equipment maker partners and customers.BBA said it will be "highly" complementary to Ontic's existing sites in Chatsworth, California, Cheltenham in the UK and Singapore.The $97m consideration represents an expected year one EBITDA multiple of 11.1x before acquisition related expenses of $1.6m.BBA chief executive Mark Johnstone said: "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."The deal, which is subject to certain governmental and regulatory approvals, is expected to complete late this year. It will enhance 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.