The inexorable “bigger is better” economic logic of consolidation that has reshaped much of the fixed-wing side of aviation is now beginning to emerge in the rotary-wing world as well. In what has been one of the helicopter industry’s worst-kept secrets in recent months, publicly held aeromed transport leader Air Methods has agreed to purchase 100 percent of Rocky Mountain Holdings (RMH), operator of Rocky Mountain Helicopters, itself one of the largest aeromed transport operations in America.
The deal calls for a cash purchase price of $28 million, due at closing. Air Methods plans to finance the deal via issuance of a combination of senior and unsecured subordinated notes to a third party. An additional $2.6 million in possible earn-out provisions would also be payable over the next few years. Closing details were still being worked out at press time, with final closure of the deal anticipated as early as August 31 but no later than October 31.
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