Background

The primary role of Specialist Aviation Services Limited (“SAS”) was the provision of air ambulance operations to air ambulance charities. Services included the training and provision of pilots, ground crew and engineers as well as design and manufacturing services and maintenance of the helicopters. SAS staff performed over 5,000 critical flights in 2023 and its area of operations covered a significant proportion of the South of England (Dorset, Somerset, Kent, Surrey, Sussex, Essex, Hertfordshire, Cambridgeshire, Bedfordshire, London).

Following sustained losses over several years, SAS had undergone both an operational and financial restructuring, however the owners of the company subsequently made the decision to exit. A corporate finance boutique with sector expertise was initially instructed to sell the wider group, including the group’s profitable Belgian subsidiary, however, this sale process had been unsuccessful. FRP was subsequently appointed to carry out an accelerated M&A process with a strategic priority of finding a solution that facilitated the continuation of vital air ambulance operations without disruption.

Action

FRP’s Restructuring Advisory team, led by Partners Andrew Sheridan and Jonathan Dunn, immediately approached interested parties with an estimated 8 weeks available to complete a transaction before the company’s funds were depleted. Despite a viable offer on the table, it was increasingly apparent that more time would be required to facilitate such a complex transaction. As a result, we supported management in an approach for additional funding from its charity customers to provide the crucial additional time required to execute the transaction. This in turn required sanction from the Charities Commission but with the rapid support from SAS’s customers, the requisite funding was secured such that SAS could continue operating whilst multiple negotiations commenced in parallel to deliver the deal.

Outcome

The team successfully secured the sale of the company’s business and assets to Gama Aviation, enabling the continuation of trading and seeing all but two of the company’s 184 staff transfer to Gama Aviation. Ultimately the team successfully met their goal to achieve an outcome which secured the continued operations of the vital air ambulance service without disruption.