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Discovery Air Inc. (Discovery Air) announced it has entered into a definitive transaction agreement with MAG Aerospace Corp. (MAG), and certain subsidiaries of MAG and Clairvest (as defined below) (collectively, the “Buyer Group”) to sell its fire services business (DAFS Disposition) operated by its subsidiary Discovery Air Fire Services Inc. (DAFS). The total transaction consideration is approximately $15.38 million, subject to certain post-closing purchase price adjustments (Purchase Price).
“MAG is an excellent home for our valued DAFS employees and customers and will allow the company to focus on its strategic growth plans while reducing its indebtedness,” said Jacob Shavit, president and CEO of Discovery Air.
Following the closing of the DAFS Disposition, Discovery Air will continue to operate its other core businesses, being: (i) Discovery Air Defence Services Inc., the prime supplier of airborne training services to the Canadian Department of National Defence and to the German Air Force, with growing operations in the United States; (ii) Great Slave Helicopters Ltd., one of the largest helicopter operators in Canada, which conducts airborne geographical and environmental surveying, fire suppression and oil and gas exploration in most parts of Canada, as well as internationally; (iii) Air Tindi Ltd., a commercial fixed-wing charter company that provides scheduled and charter passenger and cargo services as well as medevac equipped aircraft services primarily in northern Canada; and (iv) Discovery Mining Services Ltd., an exploration industry supply and expediting company serving the needs of customers operating throughout Canada.
It is expected that, following the completion of DAFS Disposition, Discovery Air will increase its operational and growth focus on these businesses. Proceeds from the DAFS Disposition will be used to reduce the company’s indebtedness.
