Gama Aviation Plc today announced the strategic acquisition of Jet East Aviation Corporation, LLC (“Jet East”) from East Coast Aviation, LLC which will significantly expand its existing US aircraft maintenance operations.
Jet East is a full-service business aviation aircraft maintenance provider.
The acquisition of Jet East has been transacted by the Group’s wholly owned US subsidiary Gama for $7.7m in cash, with a further $1m in deferred cash payable over two years and the assumption of $3.2m of Jet East debt.
In 2020, Jet East’s performance was negatively impacted by COVID-19. In 2019, it reported revenues of $29.5m and an underlying EBIT of $1.2m inclusive of a depreciation charge of $0.3m. The net assets of Jet East as at 31st December 2019 were $6.7m.
The acquisition will substantially enhance the Group’s already extensive maintenance capability within the US, capturing further market share in the world’s most valuable business aviation market with circa 15,000 active business aviation aircraft.
The enlarged business will provide unparalleled coast-to-coast coverage and capability that will enhance its service offering to the market and strengthen its trading relationships with key customers.