General Dynamics-Jet Aviation Deal to Boost Gulfstream MRO Capacity

General Dynamics' recently announced acquisition of Jet Aviation will enable it to service aircraft in countries where sales of GA aircraft, particularly of its Gulfstream models, are spiking.

The defense contractor said it was buying the Zurich-based aircraft service provider for roughly $2.25 billion. The deal will specifically allow General Dynamics to boost its overseas maintenance, repair and overhaul (MRO) capacity for Gulfstream jets. Its current service centers are in the United Kingdom and United States. Meanwhile, Jet Aviation has 25 facilities and 5600 employees in Europe, the Middle East, Asia and the Americas.

General Dynamics bought the Gulfstream business unit in 1999. Sales of this jet brand have been strong in emerging markets such as the Middle East and South Asia.

The deal is subject to normal antitrust clearance and could close by January. Jet Aviation is expected to operate as an independent business unit in the General Dynamics Group.

General Dynamics, headquartered in Falls Church, Va., currently employs roughly 84,600 people worldwide and anticipates 2008 revenues of approximately $29.5 billion.