Growthgate Backed Gama Aviation Completes Reverse Merger & Lists on AIM London Stock Exchange
Growthgate-backed Gama Aviation completes reverse merger and lists on AIM London Stock Exchange
The merger creates a circa £130M/$200M capitalized global leader
Manama – Bahrain. December 9, 2014. Growthgate Capital, the Gulf-based investment firm announced today that its portfolio company Gama Aviation has proposed a £82 million ($127 million) reverse takeover with Hangar 8 Plc, an international operator listed on the London Stock Exchange’s Alternative Investment Market (AIM). Subject to completion in early January 2015, the new business, Gama Aviation Plc (AIM: GMAA) will be listed with an anticipated market capitalization of £130million ($200 million).
Growthgate Capital 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 realizing superior returns over invested capital.
Growthgate Capital first invested in Gama Aviation in 2007, and was joined by partners Crescent Investments and a private investor’s group. Today, Gama Aviation is a global business aviation services organization, and with the merger the new combined entity will become a leading global player.
The deal brings together two complimentary businesses, with very little operational overlap, creating a combined business of the scale, breadth and depth required by progressive and growing market. On completion the offering will combine to:
- Have 144 aircraft under management, operating from 44 different locations in 15 countries across 5 continents with a strong presence in North America, the UK, Continental Europe, Africa, Middle East, Asia and South America
- Offer a comprehensive service, operating and supporting aircraft from all major manufacturers and all classes of private jet aircraft
- Leverage economies of scale through: a greater number of managed aircraft, across a greater number of geographic locations, providing customers with more choice and convenience, improved logistics and operational cost efficiencies
Karim A. Souaid, General Manager of Growthgate Capital, stated, “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.”
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”.