TIDMGMAA
RNS Number : 7821L
Gama Aviation PLC
15 January 2021
Date: 15(th) January 2021
This announcement contains inside information for the purposes
of article 7 of the Market Abuse Regulation (EU) No 596/2014
Gama Aviation Plc (AIM:GMAA) ("Gama Aviation", the "Group")
Strategically Significant Expansion of the Group's US
Maintenance Operations
Gama Aviation Plc, the global business aviation service
provider, today announces 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 with approximately 200 employees. It supplies
a range of maintenance services at high traffic business aviation
gateway airports that include, amongst others, the cities of New
York, Boston, Philadelphia, Cleveland and Cincinnati. Jet East's
maintenance network is highly complementary to the Group's existing
US operations with little service or geographic overlap.
The acquisition of Jet East has been transacted by the Group's
wholly owned US subsidiary Gama Aviation Engineering Inc ("GAEI")
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. The
transaction has been entirely funded from the Group's existing
resources.
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 31(st) 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
significantly strengthen its trading relationships with key
customers.
The addition of three highly experienced executives will
strengthen the Group's US business operations. A tailored long-term
executive incentive plan, which includes potential awards of GAEI
stock linked to value accretion, will ensure alignment of
managements' interests with that of the Group's shareholders.
The increased scale and competencies of the enlarged US
maintenance business and the anticipated revenue synergies and
operational efficiencies are expected to be enhancing to Group
earnings following the first full year of acquisition.
Commenting on the transaction, Marwan Khalek, Chief Executive of
Gama Aviation said:
"This strategically important acquisition enlarges and
strengthens our presence in the US, the world's largest business
aviation market. We are taking two entirely complementary
businesses and combining them to provide a highly capable,
coast-to-coast maintenance operation that supports our customers
evident need to rationalise their supply base. The combination will
provide our customers the advantages of operational efficiencies
that only a single-source strategic supplier relationship can
deliver. 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."
ENDS
For further information please visit www.gamaaviation.com or
contact:
Gama Aviation Plc +44 (0) 1252 553000
Marwan Khalek, Chief Executive Officer
Daniel Ruback, Chief Financial Officer
Camarco +44 (0) 20 3757 4992
Ginny Pulbrook
Geoffrey Pelham-Lane
Gama Aviation - notes to editors
Founded in 1983 on the simple purpose of providing aviation
services that equip its customers with decisive advantage , Gama
Aviation Plc (LSE AIM: GMAA) is a highly valued global partner to
blue chip corporations, government agencies, healthcare trusts and
private individuals.
The Group has three global divisions: Business Aviation
(Aircraft Management, Charter, FBO & Maintenance), Special
Mission (Air Ambulance & Rescue, National Security &
Policing, Infrastructure & Survey, Energy & Offshore); and
Technology & Outsourcing (Flight Operations, FBO, CAM software,
Flight Planning, CAM & ARC services)
More details can be found at: https://www.gamaaviation.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQFZGMMZDDGMZZ
(END) Dow Jones Newswires
January 15, 2021 02:00 ET (07:00 GMT)
Gama Aviation (LSE:GMAA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Gama Aviation (LSE:GMAA)
Historical Stock Chart
From Apr 2023 to Apr 2024
