BELGRADE, Mont. - Bridger Aerospace Group Holdings, Inc. (NASDAQ: BAER, BAERW), a leading aerial firefighting company, announced today its acquisition of FMS Aerospace, an Alabama-based provider of airframe modification and integration solutions. The transaction, valued at $20.6 million, was completed with equity and includes an earn-out provision contingent on future performance.
FMS Aerospace, headquartered in Huntsville, has been a partner to Bridger Aerospace in its Multi-Mission Aircraft program, contributing engineering expertise to support operations in surveillance, mapping, and intelligence. The acquisition is aimed at enhancing Bridger's in-house capabilities in emergency air services and aerospace modifications.
Sam Davis, CEO of Bridger Aerospace, expressed confidence in the combined strengths of the two organizations, emphasizing the engineering and manufacturing capabilities that FMS brings to the table. Jesse Whitfield, CEO of FMS, also highlighted the operational synergies expected to arise from the deal, including the ability to compete for larger contracts.
The equity deal comprises $17.51 million in restricted common stock issued at closing and an additional $3.09 million earn-out based on EBITDA targets over the next two years. For the year ending December 31, 2023, FMS reported revenue of $10.3 million and a net income of $2.5 million, with $2 million in cash and no debt.
While the acquisition is anticipated to be accretive to Bridger's earnings, the company has not revised its financial guidance at this time. This strategic move is part of Bridger's growth plan, aiming to expand its services in critical mission areas.
Founded in 2013, FMS Aerospace has specialized in comprehensive solutions for aircraft prototyping, testing, and certification, serving a range of government and commercial clients. Bridger Aerospace, based in Montana, is recognized as one of the nation's largest providers of aerial firefighting and wildfire management services.
The information in this article is based on a press release statement from Bridger Aerospace Group Holdings, Inc.
In other recent news, Bridger Aerospace Group Holdings, Inc., a leading aerial firefighting company, has undergone significant changes. The company reported a record first-quarter revenue of $5.5 million for fiscal 2024, despite a net loss of $20.1 million and an adjusted EBITDA of negative $6.9 million. Amid a leadership shuffle, Bridger Aerospace appointed Sam Davis as the interim CEO following the resignation of Timothy P. Sheehy.
The company expanded its board with the addition of aviation industry veteran Dan Drohan, bringing the board's membership to nine. Bridger Aerospace also refuted claims of financial instability, attributing its 2023 net loss to non-cash, stock-based compensation expenses and one-off costs related to becoming a public company and fleet investments.
Analysts at Canaccord Genuity initiated coverage on Bridger Aerospace, assigning a Buy rating, demonstrating confidence in the company's position.
InvestingPro Insights
Bridger Aerospace Group Holdings, Inc. (NASDAQ: BAER), with its recent acquisition of FMS Aerospace, has made a strategic move to enhance its service offerings and competitive edge in the aerospace sector. The financial health and market performance of Bridger Aerospace are critical factors for investors to consider in light of this development.
InvestingPro data shows that Bridger Aerospace has a market capitalization of $175.83 million, indicating its size within the market. Despite a challenging period, evidenced by a P/E ratio of -2.71 for the last twelve months as of Q1 2024, analysts have a positive outlook on the company's sales growth for the current year. This optimism is underpinned by a significant quarterly revenue growth of 1408.77% in Q1 2024, showcasing the company's potential to scale its operations and revenue streams.
However, it's important to note that Bridger Aerospace has been trading near its 52-week low, with the stock price having decreased by 45.88% year-to-date as of mid-2024. This market sentiment is reflected in the company's stock price, which closed at $3.74, compared to the fair value estimates of $5.5 by analysts and $3.7 by InvestingPro.
InvestingPro Tips suggest that while Bridger Aerospace may have trouble making interest payments on its debt, the anticipated sales growth could provide a buffer. Additionally, the company's stock price often moves in the opposite direction of the market, which could be an important consideration for investors looking to diversify their portfolio or hedge against market movements.
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