Bristow Group Inc. and Era Group Inc. agreed on Jan. 23 to merge in an all-stock transaction expected to throw the Houston-based offshore helicopter companies a lifeline from slowing oil and gas activity.
The two companies are leading providers of offshore oil and gas transportation, search and rescue (SAR) and aircraft support services to government and civil organizations worldwide. Combined, the companies expect to become more financially stronger with pro forma annual revenues of about $1.5 billion and at least $35 million in annual cost synergies.
The agreement follows remarks made by Era CEO Chris Bradshaw in a letter to shareholders last year that the offshore helicopter industry was in “dire need” of consolidation after several of the company’s peers entered bankruptcy.
“Those who follow the offshore helicopter business understand that the current industry structure is not sustainable, with multiple helicopter operators and leasing companies having already filed for bankruptcy protection and others expected to follow suit shortly,” Bradshaw wrote in the letter sent to shareholders in April 2019.
Once publicly traded, Bristow filed for Chapter 11 bankruptcy last year and emerged on Oct. 31 as a privately held company.
Bradshaw is set to become president and CEO of the combined company, which will remain headquartered in Houston.
Ducera Partners and Houlihan Lokey are financial advisers to Bristow, and Kirkland & Ellis LLP, Baker Botts LLP and Bracewell LLP are the company’s legal counsel. Centerview Partners LLC is exclusive financial adviser to Era, and Milbank LLP is its legal counsel.
Recommended Reading
Liberty Energy CEO: NatGas is Here to Stay as Energy Transition Lags
2024-03-27 - The energy transition hasn’t really begun given record levels of global demand for oil, natural gas and coal, Liberty Energy Chairman and CEO Chris Wright said during the DUG GAS+ Conference and Expo.
Green Light: NatGas Industry Just Fine, TG Natural Resources CEO Says
2024-03-27 - Craig Jarchow, president and CEO of TG Natural Resources, updated the integration status of its $2.7 billion acquisition of Rockcliff Energy and addressed macro concerns about the natural gas business at Hart Energy’s DUG GAS+ Conference and Expo in Louisiana.
Paisie: Dutch Vehicle Fleet Foreshadows Structural Shifts
2024-03-26 - The expanding role of battery electric vehicles will be supported by the development of associated supply chains, as indicated by Stratas Advisors' forecast of global EV battery production capacity.
Shipping Traffic Freezes Up in Port Waters After Baltimore Bridge Collapse
2024-03-26 - U.S. port of Baltimore traffic was suspended until further notice following a bridge collapse. At least 13 vessels expected to load coal were anchored near the port at the time of the incident.
Exclusive: Renewables Won't Promise Affordable Security without NatGas
2024-03-25 - Greg Ebel, president and CEO of midstream company Enbridge, says renewables needs backing from natural gas to create a "nice foundation" for affordable and sustainable industrial growth, in this Hart Energy Exclusive interview.