Story ID: 
PHI Buying HNZ's Asia-Pacific Operations
By: Mark Huber
Caption: The deal represents a 43 percent premium for HNZ shareholders.
Word Count: 205
U.S.-based PHI and Canada's HNZ announced a two-part transaction yesterday wherein HNZ's long-time CEO Don Wall will acquire all of HNZ's outstanding stock for $188.8 million, after which PHI will buy HNZ's operations in Australia, New Zealand, Papua New Guinea and the Philippines from Wall for an undisclosed sum. The deal represents a 43 percent premium for HNZ shareholders.

"This acquisition is an important part of our plan to diversify our [helicopter] services and international footprint," said PHI chairman and CEO Al Gonsoulin. "Together, PHI and HNZ bring a unique approach and skill to the international customer."

PHI operates more than 230 aircraft from 85 locations worldwide and employs 2,300. HNZ operates 115 helicopters worldwide under the brands Acasta, Canadian Helicopters and HNZ. It employs 600 from 36 locations.

Last year, PHI lost $26.68 million on revenues of $634 million; its 2015 revenues were $804.2 million with a $26.9 million profit. In 2016, HNZ had earnings of $248,000 on revenues of $212 million. HNZ's second-quarter 2017 revenues and flight hours were both down from the year-ago period, with revenues dropping off marginally to $56.4 million from $57.3 million and flight hours falling 7.2 percent. However, HNZ has recently gained significant new business in Asia-Pacific, including contracts for INPEX crew transport and INPEX-Shell search and rescue.