The planned merger of helicopter operators Bristow Group Inc. and Era Group Inc. marks the troubled industry’s latest response to slumping demand for offshore choppers by oil-and-gas drillers after a string of bankruptcy filings, WSJ Pro Bankruptcy reported. The combination would create the world’s largest operator of commercial helicopters, with $1.5 billion in annual sales and a fleet of over 300 choppers, in a bid that the consolidated company will be better positioned to weather the industry slump. Bristow and Era’s helicopters are used to ferry oil-and-gas workers and supplies to and from offshore platforms in the Gulf of Mexico and the North Sea, as well as other exploration areas in Africa, Asia and Latin America. With crude-oil prices sagging below $60 a barrel, many drilling companies have pulled back from starting new offshore projects because they aren’t economical. The planned all-stock deal is structured as a reverse merger in which publicly listed Era will issue shares to Bristow stockholders. Era shareholders will own 23 percent of the equity in the new company while Bristow shareholders will own 77 percent. The new company will be named Bristow.
