HALIFAX, NS, Oct. 19, 2026 /CNW/ -- Chorus Aviation Inc. ("Chorus" or the "Company") (TSX: CHR) is pleased to announce that it has entered into an agreement to acquire SkyCare Air Ambulance ("SkyCare"), the largest private fixed-wing air ambulance operator in Northern Ontario. The acquisition is expected to close in the fourth quarter of 2026.
Founded in 2006 by President and Chief Executive Officer Frank Behrendt, SkyCare is a privately held aviation and medical services company headquartered in Sioux Lookout, Ontario. In 2025, SkyCare generated approximately $48 million1 in revenue. The company employs approximately 220 people across bases in Sioux Lookout; Thunder Bay and Kitchener, Ontario; and St. Andrews, Manitoba; including aviation operations personnel and acute and primary care medical professionals. SkyCare operates a fleet of 22 aircraft, including turboprops and business jets configured to support air ambulance and other specialized missions.
SkyCare provides 24/7 medevac, repatriation, organ transport and charter services across Canada and the United States. Through its longstanding relationship with Ornge, SkyCare plays an important role in supporting regional medical transportation across Ontario. Its diverse fleet and specialized capabilities enable the company to support a range of complex medical missions.
"The acquisition of SkyCare is a strong strategic fit for Chorus, adding a complementary operation with long-standing customer relationships and specialized aviation capabilities as we continue to build out our aviation, aerospace and defence platform," said Colin Copp, President and Chief Executive Officer of Chorus. "SkyCare has built a strong reputation based on its specialized capabilities, professionalism and commitment to its customers. We see meaningful opportunities to support the company's continued growth as part of Chorus, and I am pleased to welcome Frank and the entire SkyCare team."
"Joining Chorus marks an exciting next chapter for SkyCare," said Frank Behrendt, President and Chief Executive Officer of SkyCare. "Over the past 20 years, our aviation and medical professionals have built SkyCare into the company it is today. Becoming part of Chorus provides a strong platform for our continued growth while allowing us to build on the relationships, expertise and culture that have been central to our success."
Acquisition Details
Today, Chorus entered into an agreement to acquire SkyCare for total consideration of approximately $40 million, subject to customary adjustments inclusive of contingent consideration. The purchase price will be funded by $32 million in cash with the remainder of the purchase price payable on or before March 31, 2029, subject to meeting certain performance targets. This acquisition is subject to customary closing conditions and is expected to close during the fourth quarter of 2026.
This acquisition aligns with Chorus' disciplined approach to capital allocation, focusing on mid-teens return opportunities while reinforcing stable cash flows and delivering sustainable shareholder value. The acquisition is expected to be immediately accretive to Chorus' earnings and Free Cash Flow2 from the date of closing.
From 2026-2029, Chorus expects to generate approximately $500 million to $550 million of Free Cash Flow2 and aircraft sale net proceeds, supporting investment in growth opportunities targeting mid-teens unlevered returns, as well as dividends and share repurchases.
All dollar amounts are expressed in Canadian dollars.
1 Revenue is based on SkyCare's 2025 unaudited financial statements.
2 Free Cash Flow is a non-GAAP financial measure used as an indicator of financial strength and performance that is not a recognized measure for financial statement presentation under GAAP. Free Cash Flow is defined as cash provided by operating activities less net changes in non-cash balances related to operations and capital expenditures excluding aircraft acquisitions and improvements. Chorus believes that this measurement is useful as an indicator of its ability to service its debt, meet other ongoing obligations, and reinvest in the Company and return capital to Common Shareholders.
Forward-Looking Information
This news release includes forward-looking information and statements within the meaning of applicable securities laws (collectively, "forward-looking information"). Forward-looking information is identified by the use of terms and phrases such as "aims", "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "potential", "predict", "project", "will", "would", and similar terms and phrases, including negative versions thereof. Forward-looking information may relate to, among other things, the anticipated closing of the acquisition of SkyCare, the method of financing for the acquisition; the expected timing thereof, expected financial condition, operations and prospects of SkyCare; the satisfaction of closing conditions, the estimated purchase price, the fact that the acquisition of SkyCare is expected to be immediately accretive to Chorus' earnings and free cash flows; and the impact of the acquisition on Chorus' future financial position, financial performance and operating results. All information and statements other than statements of historical fact are forward-looking and by their nature, are based on various underlying assumptions and expectations that are subject to known and unknown risks, uncertainties and other factors that may cause actual future results, performance or achievements to differ materially from those indicated in the forward-looking information. As a result, there can be no assurance that the forward-looking information included in this news release will prove to be accurate or correct.
Forward-looking information is based on reasonable assumptions made by management as of the date hereof, including: information regarding the timing of completion of the acquisition of SkyCare on the terms set out in the purchase and sale agreement and in a manner consistent with management expectations; the ability of the parties to satisfy closing conditions, the accuracy of management's assessment of the effects of the completion of the acquisition of SkyCare, including the successful integration of the acquired operations and ability to generate synergies consistent with management's expectations; the retention of key personnel; the ongoing consistent financial performance of Chorus; and general economic and market conditions. However, these assumptions may prove to be incorrect, and forward-looking information is subject to significant risks and uncertainties that could cause actual results to differ materially. These risks include, but are not limited to, the risk that the acquisition may not be completed as anticipated, unforeseen integration or operational challenges, loss of key employees or customers, changes in business or economic conditions, and other risks set forth in Chorus' Annual Information Form dated February 12, 2026, and in Chorus' public disclosure record available under its profile on SEDAR+ at www.sedarplus.ca.
The forward-looking information contained in this news release represents Chorus' expectations as of the date of this news release (or as of the date they are otherwise stated to be made) and is subject to change after such date. Chorus disclaims any intention or obligation to update or revise any forward-looking information as a result of new information, subsequent events or otherwise, except as required by applicable securities laws. Readers are cautioned that the foregoing factors and risks are not exhaustive.
About Chorus Aviation Inc.
Chorus is a holding company which owns the following principal operating subsidiaries: Jazz Aviation, primary provider of regional air services under the Air Canada Express brand; Voyageur Aviation, a provider of specialty charter, aircraft modifications, parts provisioning and in-service support services; KADEX Aero Supply, an original equipment manufacturer (OEM) aircraft parts distributor and provider of repair and overhaul services; Cygnet Aviation Academy, an accredited training academy preparing pilots for direct entry into airlines; and Elisen & Associates, a provider of aerospace engineering and certification services. Together, Chorus' subsidiaries provide services that encompass every stage of an aircraft's lifecycle, including: aircraft refurbishment, engineering, modification, repurposing and transition; contract flying; aircraft and component maintenance, disassembly, and parts provisioning; aircraft acquisition and leasing; and pilot training.
Chorus Class A Variable Voting Shares and Class B Voting Shares trade on the Toronto Stock Exchange under the trading symbol 'CHR'. Chorus' 5.75% Senior Unsecured Debentures due June 30, 2027 trade on the Toronto Stock Exchange under the trading symbol 'CHR.DB.C'. For further information on Chorus, please visit chorusaviation.com.
SOURCE Chorus Aviation Inc.
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