The total consideration is up to £10m (£8m initial/£2m deferred) and is being funded by existing cash and debt facilities and the issue of £600,000 worth of new shares to the operational management shareholders within Redline.
The acquisition is expected to enhance earnings in its first full year of ownership. The business generated revenue of £6.5m and adjusted EBITDA of £0.8m in the year to March 31, 2019. The total consideration therefore represents an EV/EBITDA multiple of 12.5.
The acquisition is transformative for Air Partner’s Consulting & Training division, now re-named Air Partner Safety & Security, adding proprietary software and e-learning capabilities to the company portfolio. Based on Redline’s previous performance, the Consulting & Training division will represent around 25% of revenue (from 15%) and 15% of operating profit (from 6%) once the acquisition is completed.
Mark Briffa, CEO of Air Partner plc, commented: "Redline has a world class reputation in the aviation sector for delivering first class security training and solutions to an international customer base. I am delighted to welcome Paul, Redline's employees, associates and customers to the Air Partner Group. Redline is a significant milestone in the development of our new Safety & Security division. This acquisition further extends our services into aviation security, and combined with our existing aviation safety activities, enables us to deliver a compelling suite of aviation safety and security products and services, both physically and digitally, to a high-quality global customer base."