Growthgate, a middle-market specialist private equity firm, has announced the sale by its majority-owned JetSet Equity Partners, of 51 per cent of the capital stock of Gama Group Mena, the manager and operator of private jets. 

 

The company is a UAE-licensed entity that owns and operates region-wide private aircraft, and provides jet management services, business aviation repair and maintenance facility, and fixed based operations (FBO), out of the Sharjah International Airport.

 

Growthgate led the negotiations with Gama Aviation, who prior to the transaction owned 49 per cent of Gama Group Mena. 

 

The deal was concluded for a cash consideration of $5.1 million, said Gama Aviation. Following the acquisition, the Gama will own 100 per cent of Gama Mena.

 

Gama Aviation is a publicly listed company whose shares are traded on the London Stock Exchange, making this deal one of the rare cross-border acquisitions between the UK and the UAE. 

 

The transaction represents a return of 1.7x in a risk-free, leverage-free, and professionally-managed venture. 

 

JetSet Equity Partners' ownership includes Growthgate, Crescent Investments and Felix Trading Co.

 

The UAE, and Sharjah in particular, has gained over the years significant momentum in the aviation sector; starting with the early launch of Air Arabia as a pioneer low-cost carrier in the Middle East, to the expansion and modernisation of airport facilities, and finally, to attracting specialist operators such as Gama Group Mena that offer a wide range of services to owners and users of business aviation. 

 

"This transaction represents the best ingredients in a partnership between capital and management. Whilst we invested funds, time and support, Gama Aviation invested expertise and management skills, which all contributed to the value creation process of a first-rate aviation venture," said Karim Souaid, managing partner of Growthgate. 

 

He added: "Having contributed previously to the expansion of Gama Aviation and taking it public on the London Stock Exchange in 2014, Growthgate is equally proud to add to it some invaluable operating assets in the Middle East via this latest transaction." - TradeArabia News Service