Permira lifted by CHF 2.5bn Jet Aviation exit

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In times when exits are more important than ever, Permira has sold Swiss aeronautics services company Jet Aviation Management AG for CHF 2.45bn in cash to US-listed aviation company General Dynamics Corporation. With this deal, Permira is said to realise a multiple of more than 3x its capital.

While the mainstream aeronautics sector is under pressure to consolidate, profit margins remain higher in the premium segment. Jet Aviation, which provides maintenance, repair and overhaul services for business jets and other small aircraft and charters executive planes, is seen as benefiting from those trends. The Zurich-headquartered company also has a global presence with 25 locations worldwide, employing around 5,600 staff.

Permira acquired the company in autumn 2005 from the family owners and refocused its strategy. Since then, the company has grown both organically and through acquisitions; In 2006, Jet Aviation Group acquired US aviation concern Midcoast Aviation Inc, and two years later, US-based maintenance and completions company Savannah Air Center. In total, Permira achieved a near-doubling of the company profits and staff and a doubling of the company's hangar capacities. (Page 60).