Exchange Income acquires MACH2 for $43-million (U.S.)

Executive Summary

• Exchange Income Corp. has acquired MnM Aircraft Component Holdings Inc. (MACH 2) for a total purchase price of $43 million (U.S.).
• The acquisition is designed to accelerate Regional One's presence in the commercial aviation aftermarket, specifically targeting the narrow and wide-body jet aircraft segments.
• The transaction is funded via $9 million (U.S.) in Exchange Income common shares and $34 million (U.S.) in cash from the corporation's credit facility.

Key Details

• Transaction Value: $43 million (U.S.) total purchase price.
• Consideration Structure:
  • $9 million (U.S.) paid in Exchange Income common shares to the vendor.
  • $34 million (U.S.) paid in cash, funded through Exchange Income's credit facility.
• Strategic Rationale:
  • Accelerates Regional One's expansion into the commercial (narrow and wide-body jet) aviation aftermarket.
  • Leverages the 737 asset base, data, and market intelligence from Exchange Income's prior acquisition of Canadian North (2025).
  • Provides Regional One with commercial expertise, asset knowledge, and inventory to enter the narrow-body aircraft segment, which is the largest part of the aircraft parts market.
• Target Company Profile (MACH 2):
  • Operates in the commercial segment of the global used serviceable material (USM) market.
  • Located in Pompano Beach, Fla.
  • Maintains long-standing customer relationships and sources high-demand components across multiple aircraft families.
  • Does not target the regional segment, resulting in less than 5% overlap with Regional One's current business.
• Financial Impact: The acquisition is accretive on a stand-alone basis to the shareholders of Exchange Income on a historical per-share basis.

Notable Quotes

• Mike Pyle, CEO of Exchange Income: "The combination of Regional One's systems and processes, MACH 2's industry knowledge and relationships, EIC's balance sheet, and Canadian North's aircraft assets and data puts us in an excellent position to accelerate our growth in the commercial USM market."
• Matthew Murrin, President and Founder of MACH 2: "The ability to leverage Regional One's proprietary data management systems and access to capital, puts MACH 2 in the best position to continue our expansion."
• Hank Gibson, President of Regional One: "Operators are increasingly relying on USM to support their operations... the opportunity to combine MACH 2's strengths with Regional One's capabilities put us in an excellent position to capitalize on market tailwinds."
• Adam Terwin, CCDO at Exchange Income: "In addition to the clear strategic merits of the transaction, the acquisition of MACH 2 satisfies EIC's investment requirements, including being accretive on a stand-alone basis to the shareholders of EIC on a historical per-share basis."