Arapahoe County-based Air Methods Corp. said Tuesday that it is acquiring FSS Airholdings Inc., parent company of CJ Systems Aviation Group Inc., for $25 million.
Air Methods, with more than 200 helicopters and other aircraft making it the largest air-ambulance operator in the country, expects to close on the acquisition in October if various conditions are met.
West Mifflin, Pa.-based CJ is a private air-medical-transport company with more than 113 helicopters and other aircraft, according to Air Methods. FSS Airholdings had net income of $1.2 million on $128.8 million in revenue for the fiscal year ended Feb. 28. Audited book equity was $22.2 million as of Feb. 28.
Air Methods plans to finance the acquisition with commercial bank term loans and lines of credit. The company said it expects to see “moderate accretion” to its earnings per share in the first year of combined operations, with more in future years as it consolidates and improves revenues.
With the acquisition, Air Methods gains operations where it does not already have a presence, including in Washington, Idaho, Wyoming, Maryland and South Dakota.
The deal also “gives us an opportunity to establish a critical mass in various parts of the country where we may already have a presence but we’re not at the levels and numbers that allow us to be efficient,” said Air Methods chief executive Aaron Todd.
CJ has about 800 employees, while Air Methods has about 2,400 employees. Todd said the company has not made a definitive decision on job cuts but that there will be some “elimination of redundancies.” Most of the redundant functions are at headquarters, he said.
Staff writer Kelly Yamanouchi can be reached at 303-954-1488 or kyamanouchi@denverpost.com.
