Exchange Income Corporation Announces the Acquisition of MACH 2

Executive Summary

• Exchange Income Corporation (TSX: EIF) announced the acquisition of MnM Aircraft Component Holdings, Inc. (“MACH 2”) for a total purchase price of US$43 million.
• The consideration consists of US$9 million in EIC common shares issued to the seller and US$34 million paid in cash from EIC’s credit facility.
• The deal expands Regional One’s (a subsidiary of EIC) footprint in the commercial aviation aftermarket, adding a proven USM (used serviceable material) business with minimal overlap to existing operations.

Key Details

• Purchase Price: US$43 million total.
• Cash Component: US$34 million funded through EIC’s existing credit facility.
• Equity Component: US$9 million of newly issued EIC common shares transferred to the vendor.
• Target Company: MnM Aircraft Component Holdings, Inc. (“MACH 2”), a Florida‑based provider of commercial‑segment used serviceable material for narrow and wide‑body jet aircraft.
• Strategic Rationale:
• Accelerates Regional One’s entry into the largest segment of the aircraft parts market (commercial USM).
• Complements EIC’s prior acquisition of Canadian North (2025) by adding commercial‑jet expertise, inventory, and customer relationships.
• Expected to be accretive on a stand‑alone basis to EIC shareholders on a historical per‑share basis.
• Operational Fit: MACH 2’s focus on the commercial USM market results in less than 5 % overlap with Regional One’s existing regional‑segment business.
• Management Comments:
• Mike Pyle, CEO of EIC, highlighted the combination of Regional One’s data capabilities, MACH 2’s industry knowledge, and EIC’s balance sheet as a catalyst for growth.
• Matthew Murrin, President/Founder of MACH 2, noted that access to capital and proprietary data will enable continued expansion.
• Regulatory: Transaction subject to customary closing conditions, including any required regulatory approvals.

Notable Quotes

“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.” – Mike Pyle, CEO, Exchange Income Corporation

“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.” – Adam Terwin, CCDO, Exchange Income Corporation