When a global heli-services business requires a time-sensitive sale to meet its CMA remedy undertakings

Overview

  • Leading global helicopter services company was mandated by the CMA to sell a standalone operation following the acquisition of a competitor.
  • AlixPartners was appointed as lead M&A advisor to CHC to lead the sales process, manage due diligence and lead negotiations to deliver the sale of the business, resulting in a successful outcome for all parties involved.

CHC Logo

“AlixPartners successfully sold OHS UK, a highly challenging transaction due to the loss-making position of the business, the restrictions and timetable enforced by the CMA and the number of stakeholders to manage.

The team was great to work with and showed incredible commitment to getting the deal over the line.”

— Robert Albergotti, CHC, SVP & Chief Financial Officer

THE SITUATION: A TIME-SENSITIVE SALE REQUIRED UNDER CMA INSTRUCTION

In June 2022, following the acquisition of a competitor, the CMA announced the requirement for CHC Group LLC (CHC), a leading global helicopter services company to sell Offshore Helicopter Services UK Limited (OHS UK), a UK offshore helicopter service provider to the Oil & Gas industry due to competition concerns in the North Sea Oil & Gas market. OHS UK was a loss-making standalone operation.

AlixPartners was appointed as lead M&A advisor to CHC to lead the sales process, manage due diligence and lead negotiations to deliver the sale of the business.

AlixPartners led a comprehensive international auction process, leading the preparation and marketing of the business and negotiations with buyers. Throughout the process, AlixPartners navigated the complexities arising from multiple stakeholder approvals, including addressing the requirements of the CMA and engaging with oil and gas customers and helicopter lessors to obtain approvals. The AlixPartners team successfully navigated these approval processes, paving the way for a successful divestment within the timetable set out by the CMA.

THE APPROACH: POSITIONING THE TARGET AS A “PREMIUM” ASSET

The AlixPartners’ deal team delivered comprehensive M&A advisory services across all stages of the divestment process:

  1. Preparation: AlixPartners invested significant time with the management team to present the asset in the best possible light, identified key selling points and potential deal issues early
  2. Maximised competitive tension: AlixPartners used their global network to approach a global population of buyers, including strategic players, private equity and high net worth individuals.
  3. Due diligence: AlixPartners provided the management team with hands on support during the due diligence phase
  4. Stakeholder management: Active engagement with all the stakeholders (CMA, lessors and customers) in order to build confidence in the transaction being presented, provide solutions to any concerns and ensure approval processes were delivered as quickly as possible.
  5. Robust negotiations: Clear messaging of CHC’s position on value and commercial positions while also managing a number of parties to progress the transaction.

THE SOLUTION: VALUE MAXIMIZED AND AN OUSTANDING OUTCOME FOR ALL STAKEHOLDERS

AlixPartners ran a comprehensive, efficient and professional sales process, which resulted in a successful outcome for all parties involved.

"AlixPartners secured optimal value given the difficult circumstances and were outstanding in robustly negotiating complex commercial matters and supported the business through the sales process."
— Robert Albergotti, CHC, SVP & Chief Financial Officer

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