Erickson to buy Evergreen Helicopters, Inc.

(Last Updated On: January 8, 2014)
Evergreen helicopter at Custer 2008
An Evergreen helicopter, a Eurocopter AS 350 B3,  at Custer, SD July 9, 2008. Photo by Bill Gabbert

As we reported on Wildfire Today earlier this afternoon, Erickson Air-Crane, Inc. has signed an agreement to purchase Evergreen Helicopters, Inc., a company with approximately 400 employees. This will be the second major acquisition Erickson has made in the last three months. In November they reached an agreement to buy Air Amazonia, a subsidiary of HRT Participacoes in Brazil, along with their 14 helicopters. Both acquisitions are expected to close in the second quarter of this year.

For the $250 million price tag, Erickson will get 52 helicopters and 12 fixed wing aircraft from Evergreen Helicopters. The 64 aircraft are a mix of leased and owned. Evergreen’s 747 “Supertanker”, which can carry up to 20,000 gallons of fire retardant, is not part of the deal and will remain with Evergreen. The 747 is still configured as an air tanker but has not fought fire recently. The company has not been interested in accepting the U.S. Forest Service’s only offer of a call when needed contract.

From Air Amazonia Erickson will receive 14 passenger transport and medium-lift helicopters, (7) S-61, (5) Bell 212, and (2) A350 that have been used in the oil and gas industry. At this time Erickson has no plans to use the Amazonia helicopters for aerial fire suppression.

Erickson Air-Crane, headquartered in Portland, Oregon, for decades has built, operated, and sold Erickson S-64 heavy-lift helicopters, using a license acquired from Sikorsky. Up through 2007 the company concentrated on firefighting (53% of their business) and timber harvesting (38%). With the planned diversification the company expects to add contracts for Department of Defense work amounting to approximately 43% of their revenue, as well as increasing the oil and gas component. They think that about 30% of their work will be in Afghanistan. After the acquisitions, firefighting will provide about 19% of Evergreen’s revenue.

Since the company went public in April 2012 their stock price has risen from $8.00 to $15.11 today. According to Zacks.com:

In 2012, the company generated revenues of $180.8 million, up 18.4% year over year. The increase in revenue was driven by new firefighting contracts, an active fire season and the company’s expansion of infrastructure construction, especially in support of the oil-and-gas market in South America.

Maybe we’re entering a period of merger-mania. As we reported December 12, 2012, Aero Air of Hillsboro, Oregon, purchased the air tanker operations of Butler Aircraft from Travis Garnick. Aero Air acquired Butler’s three DC-7 air tankers, support equipment, and spare parts in Madras, Oregon. Kevin McCullough, now the President of Aero Air, and Jack Erickson, founder and former owner of Erickson Air-Crane, became co-owners of Aero Air in 1998. Aero Air is currently converting some MD-87s into air tankers and hopes to snag a contract for “next-generation” air tankers, when and if the U.S. Forest Service ever issues the contracts. It has been 476 days since the U.S. Forest Service issued a solicitation for next-generation large air tankers, but no contracts have been awarded.

Below are examples of the aircraft Erickson will be acquiring.

–From Evergreen Helicopters:

Evergreen helicopters Evergreen fixed wing

–From Air Amazonia:

Amazonia helicopters

Thanks go out to Kelly

2 thoughts on “Erickson to buy Evergreen Helicopters, Inc.”

  1. GRRRREAAAT!!

    I love it!! This mix of aircraft surely would confuse even the best of the USFS 2012 “Airtanker Strategy.”

    This should even keep the contract office on their toes.

    Nice array of aircraft and helos to include Beech 1900D, thevenerable CASA 212, some AW and even even a LR 35……niiiiice mix

    Next Gen???? NAAWWWW. Just some great current day machinery to include some of the oldies…..only the USFS MIGHT be able to tell us what an old aircraft is.

    How would the LMA’s feel flying around in some aircraft that flew around in the Stans and SA?? Question their structural integrity? Question MX procedures?
    Be suprised, my brethern in the OCONUS market are maintaining those to both all FAA standards to include 91,135, and military contract standards that ought to make the USFS and LMA’s stand at attention. But there will be the naysayers in the contract world and folks who have told me on other sites…..I can tell a rustbucket a mile away!!” REAAALY?? or is that O’rly?

    Hopefully the LMA’s can tell us all “how they own these aircraft.” hehehehe

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