OG真人官网 Completes Sale of Interest in MAG Aerospace
Toronto, Ontario (June 7, 2018) – OG真人官网 Group Inc. (TSX: CVG) (“OG真人官网”) today announced that it and limited partnerships controlled by it completed the sale of their shares of MAG DS Corp. (“MAG Aerospace”). OG真人官网 partnered with MAG Aerospace through a minority investment in 2013.
MAG Aerospace is a leader in providing and enabling real-time situational awareness to help its customers to make the world smaller and safer. MAG Aerospace delivers full-spectrum ISR Services (operations, training, and technical services) and other specialty aviation to federal, international, civilian, and commercial customers around the world.
At closing, OG真人官网 and its limited partnerships realized cash proceeds equal to approximately US$110 million representing 8.2 times invested capital over the more than 5-year investment period.
Since OG真人官网 partnered with management of MAG Aerospace in 2013, MAG Aerospace has embarked upon a successful growth strategy that materially increased revenue from roughly US$20 million to over US$300 million today. During this time, MAG Aerospace completed four acquisitions, though the majority of the growth was the result of the organic growth strategy developed by MAG’s CEO, Joe Fluet, and his deep and capable management team.
“We are very proud of our accomplishments to date and are equally excited by our continued growth prospects,” commented Joe Fluet, CEO of MAG Aerospace. “Our partnership with OG真人官网 was a critical milestone for our company, and Ken Rotman and his team at OG真人官网 have been ideal partners during MAG’s most challenging years. OG真人官网 was with us as we grew from a small, emerging company to a market leader in less than five years, a feat we could not have achieved without their help.” added Mr. Fluet
“The value realized in this transaction is a result of the creativity, focus and flawless execution of the MAG management team led by Joe Fluet. That growth will surely continue under the continued direction of Joe and his team as MAG advances to its next stage of development,” noted Ken Rotman, CEO of OG真人官网.
The sale has a positive impact on OG真人官网’s book value per share of approximately $1.65 versus the carrying value at December 31, 2017.
William Blair acted as financial advisor to MAG in this transaction.
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