15th Jan 2021 10:26
(Alliance News) - Gama Aviation PLC on Friday announced its US subsidiary Gama Aviation Engineering Inc has acquired Trenton, New Jersey-based Jet East Aviation from East Coast Aviation LLC for USD7.7 million.
The Farnborough, England-based business aviation service provider said its subsidiary will pay USD7.7 million upfront from its existing resources, with a further USD1 million in deferred cash payable over two years. It also will assume USD3.2 million of business aviation aircraft maintenance provider Jet East's debt.
Gama Aviation said the acquisition will "substantially" enhance its already extensive maintenance capability within the US, capturing "further market share with 15,000 active business aviation aircraft."
"This strategically important acquisition enlarges and strengthens our presence in the US, the world's largest business aviation market. The combined business will also be well positioned to benefit from the inevitable recovery in US business aviation activity once the pandemic impact subsides. This is a deal that enhances our service offering to our clients, is anticipated to be value accretive to our shareholders and will provide opportunity for our people," said Chief Executive Marwan Khalek.
Shares in Gama Aviation were up 10% at 42.50 pence in London on Friday.
By Zoe Wickens; [email protected]
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