Hangar 8 and Gama Aviation to merge
Above: Hangar8 has its origins at London Oxford Airport.
Subject to completion in early January 2015, the new business - Gama Aviation Plc - will be listed with an anticipated market capitalisation of £130million ($200 million).
The merged company will manage 144 aircraft and operate from 44 different locations in 15 countries across five continents. It will have a strong presence in North America, the UK, continental Europe, Africa, Middle East and Asia as well as South America. It will offer a comprehensive service, operating and supporting aircraft from all major manufacturers and all classes of private jet aircraft.
Dustin Dryden (above), founder and CEO of Hangar8 said: "Hangar8 has achieved much in its short history but, in our highly regulated industry, success at all levels is now entirely driven by scale. Today our clients, many with ultra-long range aircraft, require their premier suppliers to be truly global too with the ability to supply a full range of private aviation services across the globe.
"This exciting combination of Hangar8 and Gama Aviation, to form Gama Aviation Plc in one step, delivers that. It does so in a way that organic growth and a series of smaller consolidations would perhaps take a decade or more to replicate. We believe Gama Aviation plc will provide a world class offering."
Marwan Khalek, former CEO of Gama Aviation and now CEO of the combined public entity said: "Over the last 30 years, Gama Aviation has grown steadily to become one of the major business aviation service providers in the world. However, through this merger we will be creating a true global leader and one that is uniquely positioned for accelerated future growth."
Growthgate Capital - the Gulf-based investment firm which has Gama in its portfolio - will receive shares in the public entity, with both the CEO and Chairman of Gama Aviation retaining their positions. This transaction results in Growthgate Capital receiving shares in the combined listed entity and realising superior returns over invested capital.
Karim A. Souaid, General Manager of Growthgate Capital, said: "A merger with Hangar 8 Plc provides a solid competitive advantage to Gama Aviation that will benefit from enhanced capabilities and a diversified revenue stream that span across services and markets. This value-accretive business combination offers synergies and economies of scale, leading to further profitability. We have forged a unique partnership with the founders-managers of Gama Aviation, whose vision and perseverance ensured a steady and beneficial journey to all."
