Gama Aviation PLC Acquisition of FlyerTech Ltd and Aerstream Ltd (9523C)
01 July 2016 - 8:38AM
UK Regulatory
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 +44 1252 553011
Citigate Dewe Rogerson +44 207 638 9571
Chris Jarvis, Associate Director
Phil Anderson, Executive Director
Jefferies International Limited +44 207 029 8000
(Nominated Adviser & Broker)
Simon Hardy and Harry Nicholas
This information is provided by RNS
The company news service from the London Stock Exchange
END
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July 01, 2016 03:38 ET (07:38 GMT)