Chorus Aviation Announces Agreement to Acquire Kadex Aero Supply

Executive Summary

• Chorus Aviation Inc. has entered into an agreement to acquire Kadex Aero Supply Ltd., a leading independent distributor of aircraft parts, supplies, and repair and overhaul services.
• The acquisition is valued at approximately $50 million CAD and is expected to close in the second quarter of 2026.
• The deal is expected to be immediately accretive to Chorus' earnings and cash flow, expanding its aircraft parts sales business and diversifying its aviation, aerospace, and defense services platform.

Key Details

• Transaction Structure: Chorus will acquire 100% of Kadex Aero Supply Ltd. for total consideration of approximately $50 million CAD, subject to customary adjustments inclusive of contingent consideration.
• Financing: The purchase price will be funded by $43 million in cash, with the remainder payable over the next two years subject to meeting certain performance targets.
• Target Profile: Kadex is a private company founded in 1994, generating approximately $60 million CAD in revenue in 2025. It employs approximately 50 people across two locations (Peterborough, Ontario, and Calgary, Alberta).
• Strategic Rationale: Kadex provides strong partnerships with over 70 original equipment manufacturers (OEMs) and deep technical expertise. The acquisition adds a complementary platform to Chorus' used serviceable materials business, delivering consistent cash flows and enhancing service breadth in the aviation parts market.
• Closing Conditions: The transaction is subject to customary closing conditions and is expected to close during the second quarter of 2026.
• Financial Impact: The acquisition is expected to be immediately accretive to Chorus' earnings and free cash flows from the date of closing.

Notable Quotes

• Colin Copp, President and CEO, Chorus: "This acquisition represents a significant step forward in our strategy to grow and diversify Chorus' aviation, aerospace and defence services... Kadex is a highly respected company with strong OEM and customer relationships and has a proven operating model with a growing revenue stream that is expected to enhance the durability of our earnings profile."
• John Lavery, President and CEO, Kadex: "Over the past 30 plus years, we have been focused on building a leading company committed to servicing our customers' aviation supply needs. Becoming part of the Chorus family of businesses is an exciting next step for Kadex and our employees - and we look forward to working with the Chorus team as we continue to grow our business."