SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): July 15, 1997 (July 11, 1997)
AIR METHODS CORPORATION
(Exact Name of Registrant as Specified in Charter)
DELAWARE 0-16079 84-0915893
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
7301 SOUTH PEORIA, ENGLEWOOD, COLORADO 80112
(Address of principal executive offices, zip code)
Registrant's telephone number, including area code: (303) 792-7400
Former Name or Former Address if Changed Since Last Report
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ITEM 5. OTHER EVENTS
Air Methods Corporation entered into definitive agreements on July 11, 1997
to acquire the stock of Mercy Air Services, Inc. ("Mercy"), an independent
provider of helicopter air medical transportation services in Southern
California and the assets of a separate maintenance facility which provides
maintenance services to Mercy. The press release set forth below was issued
July 14, 1997 describing the acquisition. Additional information will be
provided following closing of the acquisition which is scheduled for July
30, 1997.
DENVER, COLO. -- July 14, 1997 -- Air Methods Corporation (Nasdaq/NMS:AIRM)
announced today it has entered into a definitive agreement to acquire 100%
of the common stock of Mercy Air Services, Inc., which operates as an
independent provider of helicopter air medical transportation services
throughout Southern California to the Mexican border. Mercy Air has been
profitable since its inception and currently operates six Bell 222's and
two Bell 412 aircraft. On a combined basis, Air Methods and Mercy Air
revenues exceeded $45.8 million for the year ended December 31, 1996. The
acquisition is scheduled to close July 30, 1997.
Mercy Air is the dominant provider of air medical services in its service
area. Also included in the transaction is a separate maintenance facility
in Rialto, California which provides all maintenance services to Mercy Air
and is engaged in third party sales of helicopter spare parts. The purchase
price to be paid by Air Methods is $5,920,000 in cash and notes, subject to
working capital adjustments. FINOVA Capital Corporation has committed to
refinance certain assets of Mercy Air which will provide a significant
portion of funding for the transaction. No stock of Air Methods will be
issued to the sellers in this transaction.
"We cannot think of a better combination that could create synergies and
give Air Methods access to capabilities that will add significantly to
existing core competencies," said George W. Belsey, Air Methods' CEO.
According to Belsey, "The acquisition of Mercy Air is expected to
substantially enhance the profitability of both companies on a combined
basis. By using Mercy Air's successful experience as an independent
provider of air medical services, Air Methods will now be able to offer a
full range of air medical services nationwide, including medical staffing,
dispatch, and billing and collection services. Air Methods intends to
continue in its efforts to consolidate the air medical industry, building
on dual foundations of its traditional programs and this independent
model."
<PAGE>
Mercy Air management, which will continue to operate the entity after the
acquisition, decided that the best way to expand and capitalize on their
unique model and experience was to join with a respected national operator.
David Dolstein, President of Mercy Air, stated that, "We are delighted with
this opportunity to become part of a larger entity moving forward."
Based in Metropolitan Denver, Air Methods is an exclusive provider of
state-of- the-art emergency medical transportation systems and services to
hospitals throughout the United States. Air Methods also manufactures
medical interiors for civilian, military and international organizations.
Certain statements contained in this news release are based on current
expectations. These statements are forward looking and actual results may
differ materially.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
AIR METHODS CORPORATION
Date: July 15, 1997 By: /S/ AARON D. TODD
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Aaron D. Todd
Chief Financial Officer, Principal
Accounting Officer, Secretary and
Treasurer
