Gama Aviation expanding into Jersey with acquisition

Gama Aviation was looking at an expansion into the Channel Islands, with the purchase of Aviation Beauport.

The AIM-listed business aviation service provider said the acquisition of the privately-owned Jersey-based business was conditional on approval from the Jersey Competition Authority, which was expected to be completed before the end fo February.

Gama Aviation said the acquisition comprised a consideration of £2.6m in cash and the issue of 1m ordinary shares, which - based on Gama's closing share price on 7 January - valued the deal at £5.325m.

The company said that on completion, the purchase of Beauport would include fixed assets comprising property with a book value of around £2m, and a net current asset neutral position of around £650,000.

In the 12 months to 31 December 2015, Beauport was expected to achieve a turnover of approximately £6m and generate an EBITDA of no less than £725,000.

The board of Gama Aviation expected the acquisition to be earnings enhancing in the first year.

"This earnings enhancing bolt-on acquisition is an excellent strategic fit for the group, and allows us to extend our product offering in both our European air and ground operations", said Gama Aviation CEO Marwan Khalek.

"It will also provide unique access and opportunity to be of service to the large number of high net worth individuals who reside in Jersey, thereby providing potential growth in customers", he added.
At 1605 on Friday, shares in Gama Aviation were down 0.92% to 270p.