Jet East, in its latest financial reports, achieved impressive sales figures, amounting to $118.2 million in 2022 and $70.7 million in the first half of 2023. West Star Aviation’s acquisition of this business is on a cash and debt-free basis, allowing Gama to retain Jet East’s cash and debts. The $131 million deal includes provisions for covering $24 million in transaction costs and “third-party obligations,” along with $7.7 million allocated to the management of Jet East, as per the agreement signed at its 2021 acquisition.
Furthermore, Gama Aviation intends to allocate at least 55 pence per share from the net proceeds to its shareholders post-transaction. The news of this momentous deal has spurred Gama’s share prices on the Alternative Investment Market of the LSE, with shares trading at 82.50 pence per share, a notable 57.14% increase from the previous day’s closing price of 52.50 pence per share.
Dial Partners LLP, a London-based firm, is acting as the financial adviser to Gama Aviation. The legal team from Latham & Watkins LLP, spearheading the corporate deal on behalf of West Start, was led by Houston partners Bruce Herzog and Nick Dhesi, along with London partner Douglas Abernethy. The Bay Area partner Katharine Moir, New York partner Bradd Williamson, and Washington, D.C., partner Jason Cruise also played integral roles in the deal.
