ST. JOHN’S, N.L.—A Newfoundland-based aerospace and defence company that operates one of the largest independent airlines in Eastern Canada has reached a deal to be bought by a Manitoba company.
Winnipeg-based Exchange Income Corp. said the deal to acquire the Provincial Aerospace Group of Companies (PAL) is worth about $246 million and includes a combination of cash and stock.
PAL said it will continue to operate independently under current management at its headquarters in St. John’s, N.L.
In a statement, company CEO Brian Chafe says the deal will allow PAL to pursue large-scale contracts, including Canada’s fixed-wing search and rescue fleet.
PAL also operates Provincial Airlines, which provides scheduled, charter and cargo services in Newfoundland and Labrador, New Brunswick, Nova Scotia and Quebec.
The deal is expected to close by the end of this year or early next year, pending regulatory approval.
Exchange Income Corp. is a diversified acquisition-oriented company that focuses on sectors including metal manufacturing and aviation services and equipment.