CAE acquires Oxford Aviation Academy

CAE announced that it has
acquired the Oxford Aviation Academy (OAA) for C$314 million.

“We are very excited about
this acquisition as it enables us to offer our customers more locations and
additional training capacity as well as a new service for pilot and maintenance
crew sourcing. We have greatly enhanced CAE’s industry-leading position with
the addition of two of the industry’s strongest brands in Ab-Initio aviation
training and crew sourcing: Oxford
Aviation Academy
and Parc Aviation,” said Marc Parent, CAE’s president and chief executive.

Parent continued “Civil
aerospace market fundamentals are strong and we are increasing our position at
an opportune time. With this acquisition, CAE responds to market demand with an
increased footprint and a complete end-to-end solution for commercial
aviation.”

The acquisition strengthens
CAE’s position in capturing the long-term and growing market demand for
aviation professionals:

The Oxford
Aviation Academy
has enjoyed a 50-year pedigree of excellence, and the CAE-operated flight
schools will now be branded CAE
Oxford Aviation
Academy.

Oxford Aviation Academy
(OAA) had revenues of approximately C$280 million during CAE’s fiscal year 2012
and the purchase price represents approximately 9 times OAA’s EBITDA during the
same period. The acquisition will be accretive to CAE’s earnings in fiscal year
2014.

CAE has financed the
acquisition with a new senior unsecured credit facility.