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New York: Gulfstream jet maker General Dynamics said it agreed to acquire Zurich-based Jet Aviation, a privately held provider of business-aviation services, for about $2.25 billion.
Jet Aviation, currently owned by private equity firm Permira Funds, provides maintenance, repair and overhaul services for business jets. It also charters executive jets.
General Dynamics, also a major defence contractor, said the deal would expand its flight support services and is expected to immediately add to its earnings. It expects the acquisition to close by the end of 2008.
Record sales
Sales of business jets have been on track to hit an all-time record this year, reflecting an explosion of wealth - mostly outside the United States.
High fuel prices and the credit crisis have dampened growth in the US market, but a three-year boom in global jet sales has boosted companies like General Dynamics's Gulfstream and Textron's Cessna.
Following the acquisition, Jet Aviation will operate as a business unit within the General Dynamics Aerospace group under the Jet Aviation and Midcoast Aviation brands.
General Dynamics said the current management of Jet Aviation, which has about 5,600 employees, would not change.
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