Gama acquisition of Capital Air Ambulance ‘a tactical acquisition opportunity’
Gama Aviation has completed its purchase of Capital Air Ambulance.
Gama Aviation’s purchase of Capital Air Ambulance from Centreline to boost its UK fixed-wing air ambulance services was “a tactical acquisition”, which reveals the company’s agility in responding to new opportunities, Duncan Daines, group head of Engagement at Gama Aviation told CJI.
“If you’d asked me probably about four weeks ago [before the deal], did we have this on our on our horizon for M&A activity? The answer honestly would have been no. But we are well capable of taking advantage of opportunities as they present themselves.”
The agreement, signed on Tuesday, June 10th, has resulted in the transfer of the Capital team to Gama Aviation in a move that will boost the resilience of the group’s Care Quality Commission and Eurami-approved clinical team as well as its flight operations and pilot networks, according to the company. “It is an excellent strategic fit in terms of the portfolio of business,” said Daines. The acquisition will help Gama optimise fleet capacity, he said.
‘Speed and dexterity’
Gama Aviation has funds to respond quickly to new market opportunities after the sale of US maintenance, repair and overhaul company Jet East in October 2023 for $131m on a cash free/debt free basis, “We have a war chest and the agility to do things pretty quickly,” said Daines. “This allowed us to take advantage of the Capital Air Ambulance opportunity. Also, now being now a private, not a listed, company allows us to have a structure to be able to do these things with speed and dexterity.”
Capital Air Ambulance provided rapid response medical repatriation services with a guaranteed bed-to-bed service. The business specialised in providing an air ambulance medical repatriation service – using two Beechcraft King Air 200s – for patients who need to return to the UK from European destinations, whether insured or privately funded.
“We’ve already had a repatriation business for a while – this is not something that is new to us,” said Daines. Gama has deployed its own aircraft and third-party aircraft as well as working with airlines in the past as well. “So, this is scaling up an area that we’ve already been working in. We could have spent a long time trying to develop this organically, but as the opportunity was there and we could do the deal quickly and effectively. This acquisition allows us to skip that sort of organic development stage and be able to basically avail ourselves of the opportunity with Capital’s client book.”
Deal has now closed
The terms of the deal, which has now closed, were undisclosed. Gama Aviation was advised by mergers and acquisitions advisory firm Clairfield Limited. Staff have been transferred under Transfer of Undertakings (Protection of Employment), known as TUPE, Regulations.
Meanwhile, last week, Gama Aviation confirmed its participation in the International Business Aviation Council’s (IBAC) Industry Partner Programme. Marwan Khalek, founder & Group CEO said: “As a multinational aviation services business, we have a responsibility to help shape the environment in which we operate on behalf of our clients, whether they are high net worth individuals or government agencies.
Gama must contribute to industry trade bodies in the local, regional and international domains, he added. “Our association with IBAC provides a valuable platform to achieve just that – ensuring business aviation has a strong, credible voice at the highest level of international aviation governance,” he added.
