Bristow Group and Era Group have entered into a definitive agreement to combine the two companies in an all-stock transaction, a move that is intended to create a financially stronger company with enhanced size and diversification.

The combined company, which will be named Bristow, will strengthen its global leadership position with significant operations throughout the Americas, Australia, Nigeria, Norway and the UK for offshore aviation transportation and search and rescue solutions. The new organisation will offer a broader range of world class, efficient solutions through enhanced fleet size and diversity, continuing to invest in new technology and safety features to meet the evolving needs of oil and gas customers and governmental agencies.

“We believe this merger will create substantial value for the stakeholders of both companies,” says Chris Bradshaw, president and CEO of Era. “The identified cost synergies are significant and, combined with the strong pro forma balance sheet and absence of capital commitments, support robust free cash flow generation. This merger achieves more efficient absorption of the significant fixed costs required to run an air carrier and better positions the combined company to manage industry challenges.”

Bristow president and CEO L Don Miller adds: “Bristow and Era share complementary cultures built on an unwavering commitment to safety and quality through experienced, well-trained pilots, mechanics, engineers and support staff.”

Following completion of the transaction, the company will be headquartered in Houston, Texas, and Bradshaw will become its president and CEO. The senior management team will be named at a future date. The combined company will have a nine-member board of directors; seven members from Bristow and two members from Era, including the CEO. The chairman and vice chairman of the board of directors will be appointed by Bristow.

Under the terms of the agreement Bristow shareholders would own 77 per cent of the equity of the new company and Era shareholders would own 23 per cent.