Gama Aviation PLC Acquisition of FlyerTech Ltd and Aerstream Ltd (9523C)

TIDMGMAA

RNS Number : 9523C

Gama Aviation PLC

01 July 2016

July 1 2016

Gama Aviation Plc (AIM: GMAA)

("Gama", "Gama Aviation" or the "Company")

Acquisition of FlyerTech Limited and Aerstream Limited (the "Acquisition")

Gama Aviation Plc, one of the world's largest business aviation service providers, is pleased to announce the acquisition of FlyerTech Limited and sister company Aerstream Limited (the "Companies"). These are privately owned Gatwick based businesses offering a full complement of airworthiness management services.

The Acquisition comprises an initial consideration of GBP3m. A further deferred consideration of up to GBP0.6m, payable in cash, will be earned if certain future financial performance criteria are met.

In their unaudited results for the twelve months ended 31 May 2016, the Companies generated GBP1.8m and circa GBP0.7m of turnover and EBITDA respectively. The Board of Gama Aviation expects the Acquisition to be earnings enhancing in the first full year post acquisition. The Board sees a strong strategic rationale for the proposed Acquisition:

   --      Increasing the scale of Gama's airworthiness management services offered to its customers; 
   --      Enhancing the breadth of airworthiness services offered to its customers; 

-- Internalising Gama's airworthiness management services currently outsourced to third parties;

Marwan Khalek, CEO of Gama Aviation Plc commented:

"This acquisition is an excellent strategic fit for the Group and allows us to extend and enhance our airworthiness management product offering to our managed and external customers in this highly specialised segment. Gama Aviation has a worldwide managed fleet of nearly 150 aircraft that can now have access to the expertise provided by the acquired businesses making this an attractive earnings enhancing bolt-on acquisition."

Ends

Gama Aviation Plc

   Marwan Khalek, Chief Executive                                                     [phone] 

Citigate Dewe Rogerson [phone]

Chris Jarvis, Associate Director

Phil Anderson, Executive Director

Jefferies International Limited [phone]

(Nominated Adviser & Broker)

Simon Hardy and Harry Nicholas

This information is provided by RNS

The company news service from the London Stock Exchange

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July 01, 2016 03:38 ET (07:38 GMT)