Gama Aviation, the global business aviation service provider, has announced the strategic acquisition of Jet East Aviation Corporation, (Jet East) from East Coast Aviation, which will significantly expand its existing U.S. aircraft maintenance operations.
The acquisition of Jet East has been transacted by the Group’s wholly owned U.S. subsidiary Gama Aviation Engineering (GAEI) for US$7.7 million in cash, with a further US$1 million in deferred cash payable over two years and the assumption of US$3.2 million 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 US$29.5 million and an underlying EBIT of US$1.2 million inclusive of a depreciation charge of US$0.3 million. The net assets of Jet East as at December 31st, 2019 were US$6.7 million.
The addition of three highly experienced executives will strengthen the Group’s U.S. 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.