Chorus Aviation agrees to acquire SkyCare Air Ambulance for about C$40 million

Chorus Aviation (TSX: CHR) has signed an agreement to acquire SkyCare Air Ambulance, which it describes as the largest private fixed-wing air ambulance operator in Northern Ontario. The acquisition is expected to close in the fourth quarter of 2026, subject to customary closing conditions.

SkyCare was founded in 2006 by its President and Chief Executive Officer, Frank Behrendt, and is a privately held aviation and medical services company headquartered in Sioux Lookout, Ontario. Based on unaudited financial statements, it generated approximately C$48 million in revenue in 2025. It employs approximately 220 people, including aviation operations personnel and acute and primary care medical professionals, across bases in Sioux Lookout, Thunder Bay and Kitchener in Ontario, and St. Andrews, Manitoba.

The operator flies a fleet of 22 aircraft, including turboprops and business jets configured for air ambulance and other specialised missions. It provides 24/7 medevac, repatriation, organ transport and charter services across Canada and the United States, and supports regional medical transportation in Ontario through its longstanding relationship with Ornge.

Chorus will pay total consideration of approximately C$40 million, subject to customary adjustments and including contingent consideration. C$32 million is payable in cash, with the remainder due on or before March 31, 2029, subject to meeting certain performance targets. Chorus expects the acquisition to be immediately accretive to its earnings and Free Cash Flow from the date of closing, and says the deal fits its capital allocation approach of targeting mid-teens return opportunities.

Chorus President and CEO Colin Copp said SkyCare is a strong strategic fit that adds a complementary operation with long-standing customer relationships as Chorus builds out its aviation, aerospace and defence platform. Behrendt said joining Chorus marks the next chapter for SkyCare.

Air ambulance is a segment where revenue is anchored less by spot demand than by standing relationships with health authorities and provincial agencies. A fleet of 22 aircraft supporting Ornge, with bases spread across two provinces, is the kind of asset whose value sits in those relationships and in the medical staffing around the aircraft, not in the airframes alone. That explains why an acquirer describing its strategy as building an aviation, aerospace and defence platform would pay for an operator of this profile.

The price structure is also characteristic of owner-founded acquisitions in specialised operations. Roughly C$32 million of the approximately C$40 million is cash at closing, while the balance is deferred to 2029 and tied to performance targets, which keeps the founder and management exposed to how the business performs after the handover. Against C$48 million of 2025 revenue, the headline consideration is below one year of sales, though that revenue figure is unaudited.

The next milestone is the fourth-quarter 2026 closing and the satisfaction of its customary conditions. After that, the performance targets that determine the deferred payment through March 31, 2029 will show how much of the SkyCare contract base Chorus expects to hold and grow.