Another story on this:
BBA Aviation, the UK aviation services company, announces that it has agreed to sell its Oxford Aviation Training business ('OAT') to GCAT Flight Academy for GBP 32m in cash. As part of the transaction, BBA will retain cash of approximately GBP 5m as part of the transaction. The transaction will produce an exceptional profit on disposal of around GBP 20m with tax leakage expected to be minimal. Completion is expected to take place within the next two weeks.
OAT, based at Oxford Airport, is one of the world's leading airline pilot training establishments, and has been supplying trained pilots to air operators across the world for over forty years. In the year ended 31 December 2006, OAT had a turnover of GBP 18.5m.
Commenting on the disposal, BBA Aviation's new Chief Executive Simon Pryce said: "I am delighted that Oxford Aviation Training is joining GCAT. GCAT is a market leader in the Pilot Type Rating Training sector and becoming part of a wider training group will be of substantial benefit to the OAT business and its staff, enabling it to consolidate its position in the European market place and beyond.
We are continuing with the process of rationalising our portfolio and the sale of Oxford Aviation Training further increases BBA Aviation's focus on its core Flight Support and Aftermarket Services and Systems activities. The proceeds of the sale will be invested in these core businesses, where we see a number of opportunities for consolidation."