Gama Aviation has acquired Jet East Aviation from East Coast Aviation.
The strategic acquisition expands the global business aviation service provider’s US aircraft maintenance operations.
Its wholly owned US subsidiary Gama Aviation Engineering transacted the acquisition 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 Gama’s existing resources.
Gama said Jet East’s maintenance network, which includes New York, Boston, Philadelphia, Cleveland and Cincinnati, was “highly complementary” to its existing operations, with little service or geographic overlap.
The combined business covers 65 US cities and is going to market as ‘Jet East, a Gama Aviation company’ in order to preserve the brand equity of both organisations.
Stephen Maiden, who has extensive executive experience in the MRO industry and joined Jet East in March 2020, will lead the combined companies as CEO. He will head a leadership team comprised of executives from both organisations.
The combined business features more than ten line stations and heavy scheduled maintenance facilities, with specialisations in composites, structural component repair, paint and non-destructive testing. There is also a nationwide parts and logistics business and a paint & interior facility.
Gama Aviation Group’s CEO Marwan Khalek said: “Over the last six years we have grown a substantial coast-to-coast maintenance operation serving some of business aviation’s most highly respected brands. Through the integration of both company’s strengths we are stepping-up our service levels, offering more locations, services, and most of all convenience, to our customers.
“Our ultimate goal is to work with all operators to gain an advantage by reducing downtime and increasing aircraft availability and this deal is integral to our ability to achieve just that.”
Jet East Aviation’s chairman Francis John noted the new opportunities that would be available as a combined business. “The synergies between the two organisations provide for a deeper level of service, an increased portfolio of capabilities and a more sophisticated network of team members to serve our customer base,” he said.
“Jet East and the Gama Aviation operation in the US have unique histories built on hard work and determination. The successes of each entity are significant, and the combined workforce will yield an even stronger maintenance organisation as we join forces. I look forward to continuing to guide the combined leadership team in my role as executive chairman.”
Jet East reported revenues of US$29.5 million in 2019, with an underlying EBIT of US$1.2 million inclusive of a depreciation charge of US$0.3 million. Its 2020 performance was negatively impacted by Covid-19.