Evergreen Helicopters, Inc. – a wholly-owned subsidiary of Erickson Air-Crane Inc. (EAC) – has received two contract extensions with Special Operations Command Africa/SOCAFRICA.
Per the contract, Evergreen Helicopters will provide a fleet of fixed and rotary wing aircraft for personnel and cargo transport for the Department of Defense in Central Africa. The aggregate value of the contract option is more than $8 million.
Founded by aviation pioneer Delford Smith, Evergreen Helicopters is a diversified provider of air transport services worldwide for cargo and personnel to government and commercial customers.
On May 2013, Erickson Air-Crane − the renowned operator and manufacturer of the Erickson S-64 Aircrane heavy-lift helicopter − acquired Evergreen Helicopters. Recently, Evergreen Helicopters extended its contract with Fluor Corp. The value of the contract is more than $100 million. Per the contract, the company will provide multiple rotary wing aircraft for cargo as well as transport mission requirements. These aircraft will be used by Afghanistan forces. This contract extension would continue to meet significant, urgent and ongoing needs of various aviation services work in Afghanistan.
Erickson Air-Crane also extended its contract with the U.S. Transportation Command to provide essential services to support overseas operations in Afghanistan.
The company is of late generating substantial revenues from contract renewals, which provide visibility to future growth. Strategic acquisitions, going forward, would also continue to strengthen Erickson's leading position in the heavy-lift market.
Erickson Air-Crane’s stand-alone business combined with the Evergreen acquisition is expected to provide the company with an incremental fleet of 64 aircraft comprising helicopters and fixed-wing airplanes. The diverse fleet serves a wide range of customers and provides significant passenger transport and airlift services for the U.S. military.
The company presently retains a short-term Zacks Rank #1 (Strong Buy). Other stocks to consider are The Boeing Company (BA), Northrop Grumman Corporation (NOC) and Embraer SA (ERJ), all with a Zacks Rank #2 (Buy).
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