What's Happening?
Bristow Group has announced its acquisition of Berry Aviation, a Texas-based company specializing in fixed-wing and drone operations, for $105 million. This strategic move aims to bolster Bristow's government services business, which includes search and rescue
contracts in the UK, Ireland, and the Netherlands. Berry Aviation operates a fleet of 23 aircraft providing government and defense aviation services, including special missions and intelligence, surveillance, and reconnaissance operations. The acquisition is expected to close in the third quarter of 2026, subject to conditions. Bristow plans to exit the Norwegian offshore helicopter support market, aligning with its strategy to focus on long-term government contracts, which are seen as more stable compared to the fluctuating oil and gas sector.
Why It's Important?
The acquisition of Berry Aviation is significant for Bristow Group as it shifts its focus from the volatile oil and gas market to more stable government contracts. This move is expected to enhance Bristow's competitive position in securing long-duration government programs. Berry Aviation's expertise in mission-critical operations and strong customer relationships are seen as complementary to Bristow's existing services. The acquisition also supports Bristow's interest in next-generation hybrid or electric aircraft operations, potentially expanding its capabilities in search and rescue missions. The divestment from the Norwegian market reflects Bristow's strategy to invest in markets with better margin profiles and value-accretive returns.
What's Next?
Bristow Group is evaluating multiple options for the divestment of its Norwegian offshore operations, with the timing and structure of any sale subject to market conditions. Despite exiting the Norwegian offshore market, Bristow plans to explore opportunities in advanced air mobility in the region. The company has conducted flight tests of hybrid-electric aircraft in Norway and plans further initiatives in 2027. The acquisition of Berry Aviation is expected to close in the third quarter of 2026, and Bristow will continue to focus on expanding its government services business.
