Exchange Income Corporation, a diversified, acquisition-oriented company, acquired Provincial Aerospace Ltd., a diversified Canadian-based aerospace and aviation company for total consideration of $246 million, of which approximately $12 million was paid in EIC common shares and the balance of which was financed through a credit facility with a syndicate of lenders.
PAL is headquartered in St. John’s, Newfoundland & Labrador and operates three distinct businesses across the aerospace, airline and aviation services sectors through various subsidiaries. Provincial Aerospace provides intelligence, surveillance, reconnaissance and maritime patrol aircraft operations and systems. As a vertically integrated aerospace and defense business, Provincial Aerospace designs, modifies, maintains and operates custom sensor equipped maritime patrol aircraft in Canada, the Caribbean and the Middle East. Provincial Airlines is an independent airline that has been operating for over 40 years in Eastern Canada providing scheduled, charter and cargo services. PAL Aviation Services operates fixed base operations at two locations, Halifax, NS and St. John’s, NL.
EIC was represented by Aikins, MacAulay & Thorvaldson LLP, with a team led by David Filmon (M&A) and including Richmond Bayes (M&A), Nigel Thompson (financing), Florence Carey (tax), Lucia Stuhldreier (transportation and regulatory), Shandra Czarnecki (employment), Maria Reimer (financing), Michael Zeismann (tax) and Jordan Riese (corporate/financing).
Provincial Aerospace Ltd. was represented by Tom Kendall of McInnes Cooper.
The Vendors were represented by Dentons Canada LLP with a legal team led by Richard Scott and Matthew Hibbert (M&A) and including Mark Mahoney (M&A), Andrew Bourns (M&A), Kelli Patel (M&A), Susan Paul (competition), Martha Harrison (regulatory), Carlo Vairo (transportation), Mark Jadd (tax) and Paul Shantz (real property and environmental).