Gol to Buy Webjet

Gol to Buy Webjet

Brazil M&A

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

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