Gama Aviation on Tuesday revealed that it has “conditionally” agreed to sell its Jet East U.S. maintenance, repair, and overhaul (MRO) business, officially Gama Aviation to West Star Aviation. The enterprise value ascribed to Jet East is $131 million but net proceeds to Gama Aviation will be approximately $100 million. Shareholder approval is required for the deal, which should be completed shortly after the general meeting on November 3.

West Star Aviation is a portfolio company of The Sterling Group. Much of Jet East’s business is for fleet operators such as management and fractional-share companies, and the company recently expanded its mobile repair team business to add mobile engine repair.

Gama Aviation has been providing MRO services in the U.S. since 2012, and in 2020 Wheels Up acquired Gama Aviation’s aircraft management business. In January 2021, Gama Aviation purchased Jet East for $11.9 million, which included assumption of debt.

“Jet East has subsequently performed strongly, benefitting from a highly committed management team, a complementary nationwide network of operations, strong customer relationships, and cost savings from rationalization of operations,” according to Gama Aviation. “There has also been considerable investment totaling some $25 million to enable growth, including setting up new facilities in Millville [New Jersey], Las Vegas, and Statesville [North Carolina].”

In 2022, Jet East’s revenues were $118.2 million and its adjusted EBIT was $1.3 million. For the first half of 2023, Jet East reported revenues of $70.7 million, which equates to growth of 27 percent compared with the first half of 2022. Adjusted EBIT for the first half of 2023 was $900,000.

“As a combined entity, we will be able to provide unparalleled service and support to our collective customer base with greater depth in providing maintenance solutions,” said Jet East CEO Stephen Maiden. “The combination enhances opportunities for our talented workforce as our capabilities increase in size and scope.”

Gama Aviation continues to provide MRO services for business and special missions aircraft operators from its facilities at Farnborough Airport in the London area and at Sharjah in the UAE. The UK-based group also provides aircraft management and private charter, as well as operating a network of FBOs.