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Air Methods Corp. Message Board

  • sage533 sage533 Aug 30, 2010 9:59 AM Flag

    Air Evac Lifeteam sale

    This sale of Air Evac Lifeteam at over $1 billion announced Friday values our company at over $50/shr. Bain & Co may buy AIRM and then have control over the industry. They could take the whole thing public in 2014 at triple their equity investment. AIRM is very cheap based on this transaction. Bain spent considerable time doing research on pricing and volume and voted with their pocketbook.

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    • Expect sale of company any day. PE firms calling/sniffing around. Expect price will be north of $53. Stock very cheap at 14.8 x earnings.

    • The other candidate is the medical division of PHI, Inc. PHIIK is dirt cheap in its own right. The medical division has no earnings but $50MM in revenue. Air Methods in talks with Bain? We will see shortly. Investors are recognizing how great this business can be and what an essential service and that the health care bill will cover reimbursement. $50 soon and still reasonable at 18 times eps at that price.

    • The acquirer can mark all the aircraft to market and depreciated them all over again. Very attractive target with all those fixed assets.

    • Not only that we have good earnings momentum in a bleak economy. AIRM is only 13 times 2011 earnings--pretty cheap. They are also paying down their debt so it becomes an attractive takeover target. Debt only $105MM with $80MM of EBITDA. They could borrow up to $400MM if need be.

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