Gama Aviation Plc announced it has conditionally agreed to sell the group’s U.S. MRO business, Jet East, to The Sterling Group, a U.S. private equity group that owns West Star Aviation, for a value of about $131 million on a cash free/debt free basis.
The sale is contingent on Gama Aviation shareholder approval at a Nov. 3 general meeting, and the transaction is expected to be completed shortly thereafter. Net proceeds from the sale of Jet East will be about $100 million, according to an Oct. 18 Gama Aviation news release.
While West Star is a leading provider of maintenance, repair and overhaul (MRO) services to the business aviation industry, Jet East provides MRO services as well and focuses on supporting fractional and managed fleet operators. Capabilities include an expansive aircraft on ground (AOG) mobile repair technician network, line maintenance operations, heavy maintenance facilities and other complementary services.
“This combination represents a truly unique opportunity to bring together two completely complementary businesses in terms of capabilities and geographic footprint,” said West Star Aviation CEO Jim Rankin. “Most importantly, the cultures of both organizations proudly prioritize customer service and a commitment to our people.”
Jet East CEO Stephen Maiden said the combined entity will be able to provide unparalleled service and support to a collective customer base with greater depth in providing maintenance solutions. Maiden added, “The combination enhances opportunities for our talented workforce as our capabilities increase in size and scope.”
“We win for our customers, employees and vendor partners by continuing to invest in the best talent, people and capabilities. We couldn’t be more excited about welcoming the entire Jet East family to West Star,” added Greg Elliott and John Griffin, board members of West Star Aviation.
A press release issued by The Sterling Group on Oct. 17 notes: "This partnership will bring together two of the best teams in business aviation that together will become stronger through added scale and expanded capabilities. Customers and vendors should expect no change while leaders of each organization work together on longer-term integration planning."
Gama Aviation Group Chief Executive Marwan Khalek said, “After interest from several parties, we are delighted to have agreed the sale of Jet East to West Star Aviation. I believe the new owner will be an excellent guardian of our valued strategic relationships and, importantly, the people that deliver critical services to our customers every day.”
Khalek said the deal will provide Gama Aviation “the appropriate capital to allow us to capture the tremendous opportunities we have in our Special Mission, Technology & Outsourcing and Business Aviation strategic business units. It is an exciting new chapter for us all as we celebrate our 40th anniversary as a business.”
Khalek thanked the Jet East team for their efforts and achievements under the leadership of Maiden. He said, “We wish them continued success as they embark on their own new chapter.”
Gama Aviation Group began providing aircraft maintenance services in the United States in 2012. Then in January 2021, following the 2020 disposal of its U.S. aircraft management business to WheelsUp, the company announced the acquisition of Jet East.
The Gama Aviation news release says the company was approached in Q4 2022 by The Sterling Group about the possibility of acquiring Jet East.
