NEW YORK, August 19, 2008 (AFP) - General Dynamics announced Tuesday it will buy Jet Aviation, a Swiss business aviation services firm, for approximately 2.25 billion dollars in cash.

The big US aerospace and defense contractor said that it had reached a definitive agreement to acquire Jet Aviation with Dreamliner Lux, a company controlled by the Permira Funds, for 2.45 billion Swiss francs.

The proposed acquisition will allow General Dynamics to expand the business aircraft sector and has been approved by the boards of directors of both companies.

Jet Aviation, based in Zurich, was founded in 1967 and 'is one of the world's leading business-aviation services companies,' General Dynamics said, citing the firm's services, including flight support and global executive-jet charter services, and aircraft sales and acquisitions.

Jet Aviation employs about 5,600 worldwide and provides services in 25 airports in Europe, Asia, the Middle East and the Americas.

The deal is expected to be completed by year-end. Upon completion, Jet Aviation will continue to serve its clients and will become a new business unit within the General Dynamics Aerospace group, the US company said.

General Dynamics's Gulfstream unit manufactures private jets.

General Dynamics is based in Falls Church, Virginia, near Washington, employs about 84,600 people. The company had 2007 revenue of 29.5 billion dollars.