Logistics company Toll Group will expand its aeromedical capability after signing an agreement to buy Pel-Air from Rex Holdings last week.
Toll Group will acquire Pel-Air’s fixed-wing air ambulance services, which currently holds a 10-year contract with the NSW and Victorian governments, and a fleet that includes eight King Air B200/300 series turbo-props and two Pilatus PC-24 jets.
"This acquisition will broaden our business in the aviation market, increasing the scale and diversity of our offering" said Alan Beacham, Managing Director, Toll Group.
"Pel-Air’s specialised capabilities will enable us to better serve our customers and open up new growth opportunities."
The move comes after Rex was placed into administration in July last year, prompting a suspension of airline operations.
Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said the sale was part of the administration process for Rex
"This is part of the ongoing administration process and proceeds from the sale will be used by the Rex Group to repay secured debt," she said.
"The Commonwealth continues to work closely with the administrators as Rex’s regional aviation business remains in voluntary administration.
"We have made clear our commitment to support Regional Aviation in Australia and the ongoing viability of key regional services."
Pel-Air will bolster the Toll Aviation business, which operates the Toll Ambulance Rescue Helicopter Service and its eight AW139 helicopters, the ACE Training Centre and Toll Uncrewed Systems.
Toll Group expects the acquisition to close at the end of the year, provided the requirements for all regulatory approvals are met.