General Dynamics Corp. (GD) will buy Jet Aviation, a Switzerland-based air servicer, for $ 2.25 billion.
Jet Aviation, controlled by European investment firm Permira, provides a wide range of services to airports - including maintenance, refurbishments and executive-jet charter services. The company operates in 25 airports across Europe, the Middle East, Asia and the Americas.
The deal, which is expected to close by the end of the year, will allow Jet Aviation to continue operating under its namesake and Midcoast Aviation brands. The deal is seen as immediately adding to earnings.
General Dynamic Chief Executive Nicholas D. Chabraja said the firm is a global leader and will "support one of our core growth areas." Last month, General Dynamics reported that its aerospace unit had double-digit sales and earnings growth, thanks in part to demand for its Gulftsream aircraft.
Permira bought a controlling stake in Jet Aviation three years ago. Terms weren´t disclosed, though reports put the firm´s value at the time at about $ 600 million. Jet Aviation was founded in Switzerland in 1967 by U.S.-trained pilot Carl Hirschmann, who built the company into one of the world´s largest business aviation service companies. Shares of General Dynamics closed at $ 92.24 and were not moving in premarkets.