MANAMA, Bahrain, December 9, 2014 /PRNewswire/ --
The merger creates a circa £130M/$200M capitalized global leader
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 the 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".
About Gama Aviation
Gama Aviation was founded in 1983 in the United Kingdom by Marwan Khalek and Stephen Wright, two pilots and private aviation entrepreneurs. Gama Aviation operates a worldwide network with global headquarters located at Farnborough Airport in the UK, its American headquarters in Shelton, Connecticut, its Middle East and North Africa headquarters in Sharjah, its Asian headquarters in Hong Kong and now with new operational base in Geneva. The group's companies and affiliates hold EU-OPS, FAA and UAE GCAA Charter Certificates, EASA, FAA and GCAA Part 145 Maintenance Approvals, EASA Part 21 Design and Manufacture Approvals. Gama Aviation's customers include governments and blue chip corporations as well as private clients and charter aviation users.
About Growthgate Capital
Growthgate Capital is a Gulf-based private investment firm that follows a "buy-and-build" strategy. The firm specializes in buying into well-managed companies with scalable business models, and leveraging those capabilities by acquiring/adding more entities to build up and grow said platform companies. Targets are principally selected from the GCC and other key markets of the MENA region. Growthgate Capital was formed in 2007 with $200m in permanent capital subscribed by a select group of shareholders including State-owned banks, public pension funds, and single-family offices from the Middle East.
The firm has completed three liquidity events: the sale of its stake in Roots Steel International (Saudi Arabia) in 2013, a dividend recapitalization of Able Logistics Group (UAE) in Q1 2014, and the current exit from Gama Aviation through the reverse merger with Hangar 8 Plc. Growthgate Capital has circa $1.65 bn in Assets-under-Monitoring and is managed by Growthgate Partners.
SOURCE Growthgate Capital