Canada’s Carson Air under new ownership

Carson Air (CRN, Kelowna) – a Western Canadian provider of fixed-wing air ambulance, cargo, and flights school training services – has been acquired by aviation investment firm Exchange Income Corporation (EIC) for CAD61 million Canadian dollars (USD49.3 million).

The purchase price was funded by the issuance of CAD3 million (USD2.4 million) of EIC common shares to the vendor and cash in the amount of CAD58 million (USD46.9 million) that was available from the corporation’s credit facility.

EIC, in a statement, also announced it had entered into additional non-binding letters of intent to acquire three unrelated companies that would tuck into and expand operations within its existing manufacturing and aviation segments.

In aggregate, the four transactions have a combined purchase price of CAD114 million (USD92.2 million), funded with CAD102 million (USD82.5 million) in cash and CAD12 million (USD9.7 million) of EIC shares. While due diligence was not yet complete and the transactions could be delayed or cancelled, the corporation expected to close them over the next 90 days.

Carson Air was established in 1990. Historically, it has been the primary provider of fixed-wing air ambulance services in British Columbia (BC).

According to Transport Canada records, it has a fleet of seventeen fixed-wing aircraft – ranging from three Cessna 560 Medevac jets, a single Beech 1900D, five Beech (twin turboprop) King Air 300s, eight Metroliners – which it uses to provide contracted air ambulance services within BC from operating bases in Kelowna and Vancouver Int’l. It also operates a single Bell 407 helicopter. In addition, it partners with FedEx Express (FX, Memphis Int’l) to fly air cargo to several destinations throughout BC, Alberta, and Saskatchewan. It also operates a flight school, Southern Interior Flight Centre.