Falls Church, USA: General Dynamics and Dreamliner Lux S.a.r.l., a company controlled by the Permira Funds, have entered into an agreement under which General Dynamics will acquire Zurich, Switzerland-based Jet Aviation for Swiss francs 2.45 billion (approximately $2.25 billion) in cash. The transaction is expected to create a worldwide business jet support network and expand General Dynamics' aerospace operations into global flight support services.
Jet Aviation was founded in Switzerland in 1967 and is one of the world's leading business aviation services companies.
The proposed acquisition, which has been approved by the boards of directors of both companies, would add to the earnings of General Dynamics immediately. The transaction is subject to normal regulatory approvals, and is expected to close by the end of 2008.
The current Jet Aviation management is expected to remain in place.
Following completion of the acquisition, Jet Aviation will continue serving the entire aircraft manufacturing community and its global client base as a new business unit within the General Dynamics Aerospace group, operating under the Jet Aviation and Midcoast Aviation brands.
Jet Aviation's 5,600 employees cater to client needs across 25 airport facilities in Europe, the Middle East, Asia and North and South America. Services provided 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.
Over the past three years, ever since Permira Funds acquired this family-owned business, Jet Aviation has developed into a global leader in business aviation services.
"We are delighted to be acquiring Jet Aviation and partnering with the current management team to continue its success. 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," said Nicholas D Chabraja, General Dynamics chairman and chief executive officer.
Jet Aviation and its principal subsidiary companies operate in nine US locations, including Boston, Chicago, Dallas, San Antonio, Palm Beach and Teterboro. 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, UK; Moscow Vnukovo, Russia; Riyadh, Saudi Arabia and Singapore.
The General Dynamics Aerospace group designs, develops, manufacturers and services a comprehensive offering of advanced business-jet aircraft. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies.