Israir Group has signed a binding agreement to acquire the remainder of Cypriot-based maintenance firm Bird Aviation.
The Israeli leisure airline operator already holds 50% of the MRO company and indicated in May that it had provisionally agreed to acquire the rest.
Israir Group will pay, in the first stage, around €2.3 million ($2.46 million) for a further 25% share of Bird Aviation – giving it 75% in total.
This will grant it the right to appoint two more directors, which means four of the six will be Israir representatives.
Israir Group will purchase from the seller around €482,000 from a joint loan given to Bird Aviation by its co-owners, while a total of €850,000 from this loan will be converted into a seven-year right to receive maintenance and repair services.
The second stage – which will begin one year after the first – will allow Israir Group to purchase another 12.5% of Bird Aviation for €1.375 million, and appoint another director.
It also features a put option which would obligate Israir to acquire the outstanding 12.5% for the same price, plus interest.
Bird Aviation, which specialises in Airbus A320 support, generated revenues of €18.3 million last year, with a net profit of €1.88 million. The company was also profitable for the first quarter of this year.
