Bristow Buys Stake In Brazilian Helicopter Company

HOUSTON (AP) — Bristow Group Inc., which provides helicopter airlift services to offshore oil rigs, said Wednesday it has acquired a minority stake in a Brazilian helicopter and aviation services company in a deal aimed at capitalizing on South America's growing oil business.

Houston-based Bristow said it agreed to pay $174 million for a 42.5 percent stake in Lider Aviacao Holding SA, which provides helicopter and executive aviation services. At the same time, Bristow sold five aircraft to Lider for $55 million, reducing its net cash outlay to $119 million.

Terms of the agreement include incremental earn-out payments of up to $53 million based on Lider's achievement of growth targets for earnings before income taxes, depreciation and amortization in the next three years.

Lider operates 46 helicopters serving the oil and gas industry, representing about half of the oil and gas market in Brazil.

Its helicopter business is Lider's most profitable segment, with revenues rising at a compounded annual rate of more than 22 percent in the past three years, to $305 million in 2008, Bristow said.