AIR.L Share News (AIR)

(Sharecast News) - Aviation services group Air Partner has acquired the entire issued share capital of Redline Worldwide, trading as Redline Assured Security, it announced on Thursday, which it described as a global aviation security solutions and training company.
The London-listed firm said the total consideration payable by Air Partner would be up to £10m on a debt-free, cash-free basis, with an initial sum of £8m payable on completion and additional amount of up to £2m payable over two years post-completion.

It said the acquisition was expected to be earnings-enhancing in its first full year of ownership.

The purchase amount was being funded from the company's existing cash and debt facilities, as well as the issue of new ordinary shares to the operational management shareholders of Redline.

Air Partner described Redline as a "world leader" in its field, with proprietary software and electronic learning capabilities, offering "significant" growth opportunities and furthering its relationships with airports, airlines, governments and corporates around the world.

Redline is the UK's only International Civil Aviation Organisation (ICAO) aviation security training centre, the board said, with the board describing the transaction as a "transformative acquisition" for Air Partner's consulting and training division, now re-named Air Partner Safety and Security, that would add capabilities, customers and geographies.

It said it would materially increase its visible, long term recurring revenues, in line with its stated strategy, and confirmed the acquisition was expected to be earnings enhancing in the first full year of ownership.

"Redline has a world class reputation in the aviation sector for delivering first class security training and solutions to an international customer base," said chief executive officer Mark Briffa.

"Redline is a significant milestone in the development of our new Safety and Security division.

"This acquisition further extends our services into aviation security, and combined with our existing aviation safety activities, enables us to deliver a compelling suite of aviation safety and security products and services, both physically and digitally, to a high-quality global customer base."

Briffa said the acquisition was a further progression of Air Partner's long-term corporate strategy, and the next step in the "transformational journey" it embarked on in 2015.

"Our objective remains to improve both the quality and visibility of our group earnings over time, which we believe will be achieved by focusing on our customers and our people, while investing in products, services and office infrastructure as we manage the business for the long term."

At 1213 GMT, shares in Air Partner were up 2.29% at 93.7p.