Winnipeg, Canada-based Exchange Income Corporation (EIC), which focuses on opportunities in the aviation, aerospace and manufacturing sectors, has acquired some of the assets and operations of Wings Over Kississing for a purchase price of US$10 million, subject to customary post-closing adjustments. The purchase was funded by the issuance of $2.2 million of EIC common shares to the vendors and $7.8 million of cash from its unused credit facility.
EIC already owns a number of subsidiary operators in Canada including Calm Air International, Custom Helicopters, Keewatin Air, Perimeter Aviation, Provincial Aerospace and Regional One.
Wings Over Kississing flies fixed wing and rotary wing aircraft in the province of Manitoba. EIC has acquired Wings' rotary wing operations in the Island Lake region, its King Air 200 charter operations focused in Thompson, a 27,000 sq ft hangar at St Andrews airport and fuelling operations at Thompson airport.
“The acquisition of these operations and assets significantly strengthens our aviation operations in Manitoba," says EIC CEO Mike Pyle. "The King Air operations provide us with a new charter platform, and combined with the fuelling station at Thompson airport, we can better serve this key travel hub for communities in northern Manitoba.
“The addition of the rotary wing operations enables us to continue to build our partnership with customers in the Island Lake region, while the St Andrews hangar represents a significantly upgraded facility for custom. Continued investment in the province is important for EIC and we look forward to breaking ground on the previously announced 60,000 sq ft hangar at the Winnipeg International airport in the near future as part of EIC bringing the heavy maintenance for the fixed wing search and rescue to Manitoba.
“Accretive acquisitions and investment in our operations is the foundation to our business model. This model has led to robust growth in EBITDA and adjusted EPS over the last number of years, particularly in 2018, and is expected to continue in 2019."
Wings Over Kississing founder and president Curt Enns adds: "We are very pleased that our St Andrew's base, fuel, King Air 200 and Island Lake helicopter operations found a good home with EIC. As proud Manitobans, we are happy that our operations are going to a great company with its home base here.
“My wife Juanita and I will continue to focus on our lodge and remaining aircraft platform, including float operations. We look forward to working with EIC as we focus on our other businesses."