LONDON: Air Charter Service (ACS) says group chairman Chris Leach and Hangar8 chairman Nigel Payne are discussing a proposed merger of the two companies.
Hangar 8, an operator of privately-owned passenger jet aircraft, said it was in "advanced discussions" about a p
otential combination of the two companies.
Chris Leach commented: "As it stands the proposed deal would be a reverse takeover, as ACS is the larger entity. However, essentially what is being proposed is a merger that would create a new, larger aviation group funded by new investment."
The structure of the proposed new company, including the name of the new organisation, is still under discussion says ACS. "It is early days at the moment, but what we can say is that the proposal as it stands is exciting and would be extremely beneficial for both companies," Leach added.
Nigel Payne, non-executive chairman of Hangar8 said he was "very excited about the prospect of putting Hangar 8 and ACS together to strengthen our combined offering to the aviation industry. I believe that the combination of the two businesses provides for a compelling proposition for all of the stakeholders of both businesses."
ACS said it completed almost 7,500 charter contracts in its latest financial year ending Jan 31 2014. The company reported turnover of £253 million in the previous year.
Commenting on the last 12 months, managing director Ruan Courtney said: "We have seen constant year on year growth for several years, but this is one of the largest single jumps in charter numbers that we've ever had," adding: "Although revenue has not increased by the same percentage – proving that it is a tougher market than in previous years – the positive side is that we are still gaining market share."
Hangar8 reported revenues of £23.6 million for its financial year ending June 2013 – up 39 percent over the previous year. Gross profit rose 69 percent to £8.3 million.
