BBA Aviation agrees to buy EPIC Fuels for $88.1m

BBA Aviation has agreed to buy fuel and fuel-related services supplier EPIC Fuels for a cash consideration of $88.1m.

The consideration represents an expected year one earnings before interest, taxes, depreciation and amortisation multiple of 11.7x pre- acquisition related expenses of around $1.2m and EPIC is expected to achieve BBA's return on invested capital target threshold of 12% by year three.

EPIC provides services at 205 privately owned independent fixed-based operator (FBO) locations, 185 of which are branded EPIC and 20 of which are branded UVAir. BBA said the addition of EPIC's FBO locations is complementary to its existing ‘Signature Select’ branded locations, establishing a virtual, non-owned, network to operate alongside its "market-leading" owned FBO network.

This creates a total network of over 400 FBO locations, significantly extending Signature's network relevance and the range of services it can offer.

EPIC is expected to contribute revenue of around $400m in the first full year of ownership.

BBA chief executive Mark Johnstone said: "We are pleased to have reached an agreement to acquire EPIC. This acquisition fully supports the strategic development of Signature through increasing our network relevance, extending the range of fuel and non-fuel services we offer our customers across our unique FBO network and continuing to establish a competitive cost structure through investment in technology and economies of scale."