West Star Aviation, part of Sterling Group’s portfolio, announced a $131m purchase agreement for Jet East on 17 October.
According to Gama Aviation, negotiations for the acquisition began in Q4 2022.
As both firms are providers of maintenance, repair and overhaul services (MRO), the companies will combine expertise while “prioritising customer service".
According to West Star, this agreement lead to expanded capabilities across the Aircraft on Ground (AOG) network, line maintenance operations, heavy maintenance facilities and other “complementary” services.
As noted by Gama Aviation, the former parent company of Jet East, “the sale is contingent on shareholder approval at a general meeting, which is to take place at 9am on November 3, 2023 and the transaction is expected to be completed shortly thereafter”.
West Star Aviation CEO Jim Rankin emphasised the importance of bringing together the “complementary businesses”.
Rankin said: "This combination represents a truly unique opportunity to bring together two completely complementary businesses in terms of capabilities and geographic footprint."
"Most importantly, the cultures of both organisations proudly prioritise customer service and a commitment to our people”.
Jet East CEO Stephen Maiden highlighted how this agreement will allow service enhancements for customers of both companies.
Maiden said: "Joining forces with West Star provides so much optimism for everyone involved. As a combined entity, we will be able to provide unparalleled service and support to our collective customer base, with greater depth in providing maintenance solutions.
“The combination enhances opportunities for our talented workforce as our capabilities increase in size and scope. I am incredibly proud of our team and the opportunity to partner with West Star is truly amazing."
Following the acquisition announcement on October 17, shares of Gama Aviation PLC rose by over 65%, to the company's largest peak since 2019.
Marwan Khalek, group chief executive of Gama Aviation Plc added: “After interest from several parties, we are delighted to have agreed the sale of Jet East to West Star Aviation. I believe the new owner will be an excellent guardian of our valued strategic relationships and importantly, the people that deliver critical services to our customers every day.
