Falls Church, Virginia-based defence manufacturer General Dynamics has agreed to acquire Zurich-based business aviation company Jet Aviation for CHF2.45bn (about USD2.25bn) in cash from Dr
Falls Church, Virginia-based defence manufacturer General Dynamics has agreed to acquire Zurich-based business aviation company Jet Aviation for CHF2.45bn (about USD2.25bn) in cash from Dreamliner Lux, a company controlled by Permira funds.
The proposed acquisition has been approved by the boards of directors of both companies but is subject to regulatory approval. The transaction is expected to close by the end of this year.
Jet Aviation has been developed from a family-owned business during the three years it has been under the control of Permira. It will continue to operate as a separate business unit within the General Dynamics Aerospace group under the Jet Aviation and Midcoast Aviation brands.
The deal is reported to have earned Permira’s investors their biggest profit since the onset of the credit crunch. SVG Capital, a listed private equity firm that is Permira’s biggest investor, says it achieved a return of GBP84.2m, a ‘significant uplift’ to its original investment, reported to be GBP21.8m.
Jet Aviation was founded in 1967 and today employs nearly 5,600 employees, serving clients from 25 airport facilities in Europe, the Middle East, Asia and North and South America. It provides services including maintenance, repair and overhaul, completions and refurbishments, engineering and fixed-base operations, as well as aircraft management, flight support and global executive-jet charter services, aircraft sales and acquisitions and personnel services.
‘We are delighted to be acquiring Jet Aviation and partnering with the current management team to continue its success,’ says General Dynamics chairman and chief executive Nicholas D. Chabraja. ‘Under Permira’s ownership, Jet Aviation has become a global market leader in business-aviation services. As a unit of General Dynamics, it will support one of our core growth areas.
‘The Permira funds backed a period of significant capital investment in this business that drove rapid organic growth, and Jet Aviation strengthened its franchise globally through a successful acquisition strategy.
‘As a result, the company is well-positioned to capture further growth opportunities in the business aviation market. Through General Dynamics’ acquisition of this strong and rapidly growing organisation, we will expand our participation in the business-aviation industry well beyond that of our current operations.’
