- CAE (CAE) has expanded its reach in the European flight training market with the acquisition of Flight Simulation Company BV
- The company paid a total of €70 million (approximately C$108 million) to the sellers, based on an enterprise value of €100 million (approximately C$155 million)
- With earnings expected to be realised in the first full year, the purchase is in line with CAE’s internal acquisition criteria and capital allocation priorities
- In addition to the acquisition of FSC, the company is looking to raise $300 million in a bought deal offering and a further $150 million in a private placement
- CAE is currently down 5.73 per cent to $29.60 per share
CAE (CAE) has expanded its reach in the European flight training market with the acquisition of Flight Simulation Company BV (FSC).
Founded in 2005 and based in Amsterdam, near Schiphol Airport, FSC provides a variety of aviation training solutions out of a 12-bay facility equipped with primarily CAE-built Airbus A320, Boeing B737, Boeing B747, Boeing B787 and Embraer E190 full-flight simulators.
Under the terms of the deal, CAE acquired all of the issued and outstanding shares in FSC for a total of €70 million (approximately C$108 million) in cash, based on an enterprise value of €100 million (approximately C$155 million).
CAE says the purchase is consistent with its internal acquisition criteria and capital allocation priorities, and is expected to be accretive to earnings in its first full year.
“CAE is well positioned in the current environment, with access to bolstered capital resources, to enhance its market presence with selective, value-based acquisitions within its core,” said Marc Parent, President and CEO of CAE.
“The acquisition of FSC will allow CAE to better support its customers and expand its addressable market,” he added.
Separately, CAE announced today that it is looking to raise $300 million in a bought deal offering by issuing 10.06 million shares a price of $29.85 each, pursuant to an agreement with Scotia Capital, RBC Dominion Securities and TD Securities.
The underwriters have been granted an over-allotment option to purchase a further 15 per cent of the shares on offer which, if exercised in full, would result in an additional $45 million in proceeds.
On top of the bought deal offering, CAE will undertake a private placement with Caisse de dépôt et placement du Québec (CDPQ), also at a price of $29.85 per share, for grosss proceeds of $150 million.
CAE said it intends to use the funds to support future acquisitions and growth opportunities, including the purchase of FSC.
CAE is currently down 5.73 per cent to $29.60 per share at 12:33pm EST.