BBA Aviation, the parent company of component OEM and MRO provider Ontic, has confirmed the acquisition of Firstmark, an aftermarket services provider of components and subsystems, for $97 million.
The acquisition, subject to certain government and regulatory approvals, is expected to be finalized in late 2018 and will see the business become part of Ontic and be led by president and managing director Gareth Hall.
In terms of financials, BBA Aviation says the $97m price consideration represents an expected year one earnings before interest, tax, depreciation and amortization multiple of 11.1x before acquisition related expenses of $1.6m. In the first year of full ownership, it is estimated that Firstmark is expected to contribute revenue of around $27 million.
“The acquisition enhances Ontic’s exposure to the commercial and military aerospace markets, providing access to a range of growth opportunities across various established strategic platforms, with a significant installed base, high utilization rates and extended in-service live,” BBA Aviation said in a statement released this week announcing the agreement.
Firstmark, headquartered in Sewickley, Pennsylvania, provides parts and subsystems for the aerospace and defense industries. It employs more than 70 people across its sites in the U.S., which include locations in Creedmoor, North Carolina and Plainview, New York.
Ontic, with its U.S. base located in Chatsworth, California, says the acquisition will expand its stateside presence to the East Coast and will place it in closer proximity to OEM partners and customers. Ontic also has sites in Cheltenham, U.K. and Singapore.
Its existing partnership base includes products licensed or acquired from OEMs such as Honeywell, UTC Aerospace, Safran, Thales and GE Aviation.