Transaction will create a large, worldwide business-jet support network and expand General Dynamics' Aerospace operations into global flight-support services; current Jet Aviation management to remain in place. FALLS CHURCH, Va., Aug. 19
FALLS CHURCH, Va., Aug. 19 /PRNewswire-FirstCall/ -- General Dynamics
(NYSE: GD) and Dreamliner Lux S.a.r.l., a company controlled by the Permira
Funds, have entered into a definitive agreement for General Dynamics to
acquire Zurich, Switzerland-based Jet Aviation for CHF 2.45 billion
(approximately $2.25 billion) in cash.
The proposed acquisition, which has been approved by the boards of
directors of both companies, would be immediately accretive to General
Dynamics' earnings. The transaction is subject to normal regulatory
approvals, and is expected to close by the end of 2008.
Jet Aviation, with its worldwide headquarters in Zurich, was founded in
Switzerland in 1967 and is one of the world's leading business-aviation
services companies. Close to 5,600 employees cater to clients' needs from 25
airport facilities throughout Europe, the Middle East, Asia and North and
South America. Services provided include maintenance, repair and overhaul;
completions and refurbishments; engineering; fixed base operations (FBO);
along with aircraft management, flight support and global executive-jet
charter services; aircraft sales and acquisitions and personnel services. In
the past three years, under the control of the Permira Funds, Jet Aviation has
developed from a family owned business to a global leader in business aviation
services.
Following completion of the acquisition, Jet Aviation will continue
serving the entire aircraft manufacturing community and its global client base
as a new business unit within the General Dynamics Aerospace group operating
under the Jet Aviation and Midcoast Aviation brands.
"We are delighted to be acquiring Jet Aviation and partnering with the
current management team to continue its success. Under the Permira Funds'
ownership, Jet Aviation has become a global market leader in business-aviation
services; as a unit of General Dynamics, Jet Aviation will support one of our
core growth areas," said Nicholas D. Chabraja, General Dynamics chairman and
chief executive officer.
"The Permira Funds backed a period of significant capital investment in
this business that drove rapid organic growth, and Jet Aviation strengthened
its franchise globally through a successful acquisition strategy. As a
result, the company is well-positioned to capture further growth opportunities
in the business aviation market. Through General Dynamics' acquisition of
this strong and rapidly growing organization, we will expand our participation
in the business-aviation industry well beyond that of our current operations,"
Chabraja said.
Jet Aviation and its principal subsidiary companies, Midcoast Aviation,
St. Louis, Mo., and Savannah Air Center, Savannah, Ga., operate in nine U.S.
locations, including Bedford/Boston, Mass.; Chicago, Ill., Dallas and San
Antonio, Texas; Lambert, Mo.; Palm Beach, Fla.; and Teterboro, N.J. The
company also operates international facilities in Basel, Geneva and Zurich,
Switzerland; Beijing and Hong Kong, China; Cologne, Dusseldorf, Hannover and
Kassel, Germany; Dubai, UAE; Jeddah, Saudi Arabia; Kuala Lumpur, Malaysia;
London Biggin Hill, U.K.; Moscow Vnukovo, Russia; Riyadh, Saudi Arabia; and
Singapore. More information about the company is available online at
http://www.jetaviation.com.
The General Dynamics Aerospace group designs, develops, manufacturers and
services a comprehensive offering of advanced business-jet aircraft, and has a
strong reputation for superior aircraft design, safety, quality and
reliability; technologically advanced onboard systems; and award-winning
product support.
General Dynamics' senior management will discuss this transaction and
answer questions from investors and financial analysts at 8:30 a.m. on
Tuesday, August 19, at the Four Seasons Hotel, 57 East 57th Street, New York.
Investment community representatives are invited to participate in person or
by phone, and the conference will be webcast through a link at the General
Dynamics website, http://www.generaldynamics.com.
General Dynamics, headquartered in Falls Church, Va., employs
approximately 84,600 people worldwide and anticipates 2008 revenues of
approximately $29.5 billion. The company is a market leader in business
aviation; land and expeditionary combat systems, armaments and munitions;
shipbuilding and marine systems; and information systems and technologies.
Certain statements made in this press release, including any statements as
to future results of operations and financial projections, may constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, as amended. Forward-looking statements are
based on management's expectations, estimates, projections and assumptions.
These statements are not guarantees of future performance and involve certain
risks and uncertainties, which are difficult to predict. Therefore, actual
future results and trends may differ materially from what is forecast in
forward-looking statements due to a variety of factors. Additional
information regarding these factors is contained in the company's filings with
the Securities and Exchange Commission, including, without limitation, its
Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
All forward-looking statements speak only as of the date they were made.
The company does not undertake any obligation to update or publicly release
any revisions to any forward-looking statements to reflect events,
circumstances or changes in expectations after the date of this press release.
SOURCE General Dynamics
