FALLS CHURCH, Va. 25 Aug. 2008. Officials at General Dynamics and Dreamliner Lux S.a.r.l., a company controlled by the Permira Funds, have entered into a definitive agreement for General Dynamics to acquire business-jet developer Jet Aviation in Zurich, Switzerland for approximately $2.25 billion in cash.
The proposed acquisition, which has been approved by the boards of directors of both companies, would be immediately accretive to General Dynamics' earnings. The transaction is subject to normal regulatory approvals, and is expected to close by the end of 2008.
Following completion of the acquisition, Jet Aviation will be a new business unit within the General Dynamics Aerospace group operating under the Jet Aviation and Midcoast Aviation brands. Current Jet Aviation management will remain in place, General Dynamics officials say.
The General Dynamics Aerospace group designs, develops, manufacturers, and services a comprehensive offering of advanced business-jet aircraft.
Under the Permira Funds' ownership, Jet Aviation has become a global market leader in business-aviation services; as a unit of General Dynamics, Jet Aviation will support one of our core growth areas," says Nicholas D. Chabraja, General Dynamics chairman and chief executive officer. "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."
Services provided by Jet Aviation include maintenance, repair, and overhaul; completions and refurbishments; engineering; fixed base operations (FBO); along with aircraft management, flight support and global executive-jet charter services; aircraft sales, and acquisitions and personnel services
Jet Aviation and its principal subsidiary companies, Midcoast Aviation in St. Louis and Savannah Air Center in Savannah, Ga., operate in nine U.S. locations, including Bedford, Mass.; Chicago, Dallas, San Antonio, Lambert, Mo.; Palm Beach, Fla.; and Teterboro, N.J. The company also operates international facilities in Basel, Geneva, and Zurich, Switzerland; Beijing and Hong Kong, China; Cologne, Dusseldorf, Hannover and Kassel, Germany; Dubai, UAE; Jeddah, Saudi Arabia; Kuala Lumpur, Malaysia; London Biggin Hill, U.K.; Moscow Vnukovo, Russia; Riyadh, Saudi Arabia; and Singapore.