PAL AEROSPACE acquired by EXCHANGE INCOME CORPORATION
Context
Exchange Income Corporation’s acquisition of Provincial Aerospace Ltd. marks a strategic entry into the specialized sovereign aerospace defense sector, acquiring an international maritime surveillance platform to complement its stable domestic regional aviation portfolio. The transaction represents a planned exit for the founding shareholders, capitalizing on the asset's mature multi-continental footprint while transferring ownership to an institutional sponsor equipped with the balance sheet capacity to fund large-scale aircraft acquisition and sensor integration programs. The consideration is funded through the corporate unutilized revolving credit facility alongside a minor equity rollover issued directly to the vendors, leaving the buyer's balance sheet with meaningful post-closing liquidity to advance future organic fleet expansions. Chief Executive Officer Brian Chafe and the incumbent management team will retain full operational command, safeguarding specialized engineering talent and ensuring undisturbed execution of complex defense procurement agreements with international government agencies. Immediate integration priorities center on establishing an employee benefit retention trust to secure key technical personnel, followed by the integration of structural aviation supply chain synergies with existing regional airline units. The forward growth agenda focuses on scaling the high-margin outsourced maritime surveillance model into international jurisdictions where sovereign clients increasingly opt for asset-light, contractor-operated border and economic zone monitoring solutions.
PAL AEROSPACE, which reported an EBITDA margin of in 2014, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the Industry & Manufacturing sector (11.6x).
-> Deep-dive in Industry & Manufacturing market trends
Target
PAL AEROSPACE (ex Provincial Aerospace) is a Canadian diversified company operating in the aerospace, aviation, and aeronautical services sectors. Founded in Canada, the company is a leader in surveillance, reconnaissance, and maritime patrol operations and systems. Provincial Aerospace designs, modifies, maintains, and operates customized sensor-equipped maritime patrol aircraft in Canada, the Caribbean, and the Middle East. The company has three distinct divisions: PAL Airlines, Provincial Airlines, and PAL Aviation Services. PAL Airlines is an independent airline that has been operating for over 40 years in Eastern Canada, providing scheduled, charter, and cargo services. PAL Aviation Services operates fixed base operations in Halifax and St. John's, and offers aircraft refueling, ground handling, and aircraft maintenance services. The company is equipped with a fleet of 30 aircraft and is recognized for its expertise in designing and implementing maritime surveillance solutions for governments around the world.
Ent. Value
Equity Value
Multiples
EV / Revenue
EV / EBITDA
EV / EBIT
Historical Financials (CAD)
Similar deals in Aerospace, Naval & Defense
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 07/2017 | THE CARLYLE GROUP | ADB SAFEGATE | BELGIUM | Aerospace, Naval & Defense |
| 07/2017 | ARGOS WITYU | REVIMA GROUP | FRANCE | MRO (Maintenance, Repair & Overhaul) |
| 06/2017 | TOWERBROOK / TORREAL / PENINSULA CAPITAL | AERNNOVA | SPAIN | Aerostructures |
| 02/2016 | ADB SAFEGATE / PAI PARTNERS | SAFEGATE INTERNATIONAL | SWEDEN | Aerospace, Naval & Defense |
| 05/2015 | WÄRTSILÄ CORPORATION | L-3 MARINE SYSTEMS INTERNATIONAL | GERMANY | Naval |
| 04/2015 | SPRINGWATER CAPITAL | AERNNOVA | SPAIN | Aerostructures |
| 12/2013 | TEXTRON | BEECHCRAFT CORP. | UNITED STATES | OEM & Aircraft Manufacturers |
| 11/2013 | PAI PARTNERS | ADB SAFEGATE | BELGIUM | Aerospace, Naval & Defense |
| 07/2012 | TIKEHAU CAPITAL / IDIA CAPITAL INVESTISSEMENT | LMB AEROSPACE | FRANCE | Engines & Systems |
| 06/2009 | MONTAGU PRIVATE EQUITY | ADB SAFEGATE | BELGIUM | Aerospace, Naval & Defense |
REFERENCES
Valuation range: EV 100M - 350M CAD
Revenue range: 100M - 200M CAD
EBITDA range: 10M - 30M CAD
Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of PAL AEROSPACE by EXCHANGE INCOME CORPORATION are reserved for mynth community members. Register for free to unlock full data.
Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Target: pal aerospace
Acquirer: exchange income corporation