... with the announcement this week that it has agreed to acquire Zurich-based Jet Aviation from Permira Funds for some $2.25 billion. According to a GD release, the acquisition has been approved by the boards of both companies and should be completed by the end of 2008. At a time when the news is dominated by foreign investors buying up U.S. airport-based businesses, it’s interesting to see a U.S. firm go the other direction.
General Dynamics, which also owns Savannah-based Gulfstream, in one move now has access to a global network of first-class fixed base operations that it owns. That includes FBOs in the Middle East, China, and Russia, which Jet Aviation has been adding in its aggressive growth pattern of late.
Of course, the deal also includes St. Louis-based Midcoast Aviation, recognized as one of the leading MRO centers in the world. It creates a portfolio of aviation companies that are seen as being among the best at what they do.
No definitive word yet on where the ‘new’ Jet Aviation will be headquartered, but it’s probably safe to assume it won’t be in Switzerland. Permira, a European investment firm, had acquired Jet Aviation in 2005 from the Hirschman family of Switzerland. The FBO chain had been headquartered in West Palm Beach for years.
The Wall Street Journal reports that General Dynamics projects the new business unit to generate $1.5 billion in sales and $230 million in earnings next year, and that its MRO capabilities were the primary attraction for the acquisition.
It will be quite interesting to watch where this development leads.
Thanks for reading. jfi
