BBA Aviation PLC Joint Venture (1258T)

TIDMBBA TIDMGMAA

RNS Number : 1258T

BBA Aviation PLC

03 January 2017

3 January 2017

BBA Aviation creates market-leading aircraft management and charter company with Gama Aviation

BBA Aviation plc ("BBA Aviation", "the Group"), a market-leading provider of global aviation support and aftermarket services, is pleased to announce the merger of its aircraft management and charter business with Gama Aviation's US aircraft management business.

With around 200 airplanes under management, the combined entity, Gama Aviation Signature Aircraft Management, will be one of the world's largest aircraft management and charter businesses, supported by the exceptional and market-leading Signature Flight Support global FBO network, 10 million m(2) of hangars and an extensive fixed and mobile line maintenance, Aircraft on Ground and engine support capability.

Commenting on today's announcement, Simon Pryce, Chief Executive of BBA Aviation, said:

"This agreement marks another milestone for BBA Aviation, creating a leading charter and fleet management company, whose scale will benefit both the Group and our customers. We look forward to working with our partners at Gama Aviation to develop and grow the company in the years ahead."

Marwan Khalek, Chief Executive of Gama Aviation Plc said:

"We are delighted to announce this exciting deal and to be teaming up with BBA Aviation in the US. The enlarged business creates a market leader and an unrivalled platform for growing our market share of this massive business aviation market. The combination diversifies our customer base and extends our network coverage nationally whilst simplifying the financial arrangements with our US partners."

For further information please contact:

 
 BBA Aviation plc 
  [phone] 
  Mike Powell, Group Finance Director 
  Jemma Spalton, Head of Communications 
  & Investor Relations 
 
 
  Tulchan Communications 
  [phone] 
  David Allchurch 
  Doug Campbell 
 

Notes

BBA Aviation acquired its aircraft management and charter services business through the acquisition of Landmark Aviation, completed in February 2016, and which was placed into a trust until a suitable majority partner could be found to satisfy the requirements of the U.S. Department of Transportation's foreign ownership and control restrictions, which this transaction achieves. While in trust, the aircraft management and charter services business has been accounted for as an associate via the equity method with cash flows arising recognised in the form of dividends; the same treatment will apply following completion.

BBA Aviation and GAMA Aviation are combining their US aircraft management and charter businesses, which in the year ended 31st December 2015 delivered profit before tax of $5.5 million and $4.3 million respectively. BBA Aviation and GAMA Aviation each have a 24.5% shareholding of the enlarged entity, reflecting the near equal contribution of current profits by each party, and will get additional economic benefit from common branding agreements. The remaining 51% equity interest is owned by a small number of individual US shareholders including the key operational management.

Information on BBA Aviation plc

BBA Aviation plc is a leading global aviation support and aftermarket services provider with market leading businesses and attractive growth opportunities. BBA Aviation's Flight Support businesses (Signature Flight Support and ASIG) are focused on refuelling and ground handling of business and commercial aviation aircraft. Its Aftermarket Services businesses (Dallas Airmotive, H+S Aviation, International Turbine Service, Barrett Turbine Engine Company, International Governor Services and Ontic) are focused on the repair and overhaul of jet engines and the service of aerospace sub-systems and components.

BBA Aviation's aircraft management and charter business currently operates under the Landmark FBO and Sterling Aviation brands, and has a fleet of around 90 aircraft.

For more information, please visit www.bbaaviation.com

Information on Gama Aviation

Gama Aviation (GMAA) is a multi-disciplinary global aviation services company that specialises in providing support for individuals, corporations and government agencies. Following the reverse takeover by Hanger 8 in January 2015, Gama Aviation is now one of the top three global players in a highly fragmented market, with a fleet of 153 aircraft. Gama operates across Europe, the US, the Middle East, Asia and Africa.

Gama's services can be split into two broad areas: Air and Ground. The Air Operations include aircraft management, special mission and charters, with Ground Services covering maintenance services, Fixed Base Operator (FBO) operations and modification services.

http://www.gamaaviation.com/

This information is provided by RNS

The company news service from the London Stock Exchange

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January 03, 2017 02:00 ET (07:00 GMT)