Gol to Buy Webjet

Gol will acquire fellow Brazilian low-cost airline Webjet for BRL311m ($197m), subject to approval and possible adjustments. The acquisition value consists of a BRL96m payment and the assumption of BRL215m in debt. Gol estimates potential synergies of BRL100m. With BRL57.3m in 2010 Ebitda, the deal represents an acquisition multiple of 5.4x 2010 Ebitda, below the 7x Ebitda multiple analysts were predicting Friday. Webjet has BRL81m in debt coming due this year, with another BRL34m in 2012. This comes on top Gol’s BRL146m of maturities in 2011 and BRL55m for 2012. A New York-based M&A banker says the acquisition helps Gol eliminate an aggressive competitor, while also allowing it to gain valuable gate slots in Brazil’s notoriously crowded airport network. The acquisition will be paid for in cash, with no Gol shares being issued as part of the deal, company management said during its conference call. Gol’s shares closed TK Monday.