Satair A/S
Satair to take over Aero Quality Sales

Satair A/S 

08.04.2011 07:57

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Satair today signed an agreement with TransDigm*) for the acquisition of Aero
Quality Sales (AQS), a market-leading distributor of aviation batteries. 

The parties have agreed on a total purchase price of USD 30 million of which
goodwill, etc., is expected to account for approx. USD 24 million. The purchase
price is paid in cash at the time of closing. 

Following the acquisition of AQS, Satair's revenue for FY 2010/11 will increase
by approx. USD 6 million, while earnings will be affected only modestly due to
integration costs. For the full year 2011/12, AQS is expected to contribute
revenue growth in the region of 8%, corresponding to USD 30 million. This
amount is expected to increase considerably within a few years. The EBITDA
margin is forecast at a level above Satair's current average EBITDA margin,
while the requirement for investments in working capital will be below the
average requirement for Satair's existing distribution lines. AQS is forecast
to contribute a positive free cash flow already from FY 2011/12. 

 'AQS is an excellent match for Satair's business model, and it adds yet
another dimension to our product portfolio. We expect Satair to be able to
benefit from its strong market position by accelerating sales and achieving
cost synergies. The acquisition will help Satair solidify its growth ambitions,
also within value added services', explains John Stær, CEO of Satair. 

AQS and its integration into Satair
AQS is specialized in the distribution and servicing of aviation batteries,
primarily for the French manufacturer SAFT Groupe S.A. and a number of
manufacturers in the USA. AQS distributes batteries for practically all types
of aircraft, and the company has sales and service centers in Stamford,
Connecticut, USA, and in Heston outside London. Founded in 1954, AQS has
acquired a central position in the market as a specialist with a very wide
portfolio of battery products. The products are sold primarily to the
commercial aftermarket, the main customers being the large airlines and
maintenance companies, but also with some sales to other segments such as
business jets and military customers. 

The company will continue its operations in the existing locations for the time
being, while its sales activities will be integrated into Satair's global sales
organization. 

AQS employs a staff of 20.

*) TransDigm took over AQS in early December 2010 in connection with the
acquisition of a major group of companies. As one of the members of Satair's
Board of Directors is also the Chairman of TransDigm, Satair took the necessary
precautions in relation to the Board's discussions of and resolution concerning
the acquisition. Thus, the board member concerned did not participate in the
Board's discussions of and resolution on the acquisition of the activity. 


         CEO John Stær, jst@satair.com, +45 3247 0104
         CFO Michael Højgaard, mih@satair.com, +45 3247 0126
News Source: NASDAQ OMX



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Language:     English
Company:      Satair A/S
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0010230390
WKN:          
 
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