General Dynamics buys Jet Aviation for $2.25B
Washington Business Journal - by Tucker Echols Staff Reporter
General Dynamics Corp. is expanding its corporate aviation business by agreeing to buy Switzerland-based Jet Aviation from Permira Funds for approximately $2.25 billion.
Falls Church-based General Dynamics said the acquisition will immediately add to earnings.
The purchase of Jet Aviation will move General Dynamics beyond the hardware end of the business jet industry. Founded in 1967, Jet Aviation has more than 5,000 employees at 25 airport facilities throughout Europe, the Middle East, Asia and North and South America. Its services include maintenance, repair and overhaul, aircraft management, flight support and global executive-jet charter, aircraft sales and acquisitions and personnel services.
In announcing the sale, General Dynamics CEO Nicholas Chabraja said Jet Aviation's current management would remain in place in support of one of General Dynamics' core growth areas.
Last month, General Dynamics reported that sales in its aerospace division rose 10 percent, led by increased demand for its business jets, especially the Gulfstream G650, unveiled in March as the world's fastest business jet at speeds approaching Mach 1.
The boards of directors of both companies have approved the deal. After regulatory approvals, General Dynamics expects to close the purchase by the end of the year.
Shares of General Dynamics (NYSE: GD) fell 74 cents to $91.50 in Tuesday morning trading. The stock has gained nearly 20 percent in the last 12 months.
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