Gama Aviation Plc (AIM:GMAA) has acquired Aviation Beauport Limited, a privately owned Jersey-based business offering a range of business aviation services, the company said.
The acquisition of Beauport is conditional upon approval from the Jersey Competition Authority which is expected to complete by the end of February 2016.
The acquisition comprises a consideration of GBP 2,600,000 in cash and the issue of 1,000,000 ordinary shares, which based on Gama´s closing share price on 7 January 2016, gives a total consideration of GBP 5,325,000.
On completion, the purchase of Beauport will include fixed assets comprising property with a book value of approximately GBP 2,000,000 and a net current asset neutral position including cash of approximately GBP 650,000. In the twelve months to 31 December 2015, Beauport is expected to achieve a turnover of approximately GBP 6,000,000 and generate an EBITDA not less than GBP 725,000. The board expects the acquisition to be earnings enhancing in the first year.
Beauport has been operating since 1969 and has established itself as the only premier aircraft service provider in the Channel Islands. It provides a suite of business aviation services including aircraft charter, FBO services (including handling, parking and hangarage services) as well as having four aircraft currently under management.
Gama Aviation has agreed a GBP 10,000,000 credit line in the form of a revolving credit facility for GBP 8,000,000 and an additional overdraft facility of GBP 2,000,000 from its principal bankers, RBS. This facility will be used to fund the cash consideration of the acquisition of Beauport and will also provide further expansion capital.