GE sells aircraft leasing division to AerCap in $30bn deal
11 Mar 2021
erCap, the global aircraft lessor, has agreed to buy GE Capital Aviation Services, a GE business, the company said in a statement.
The deal is expected to form the world’s largest aviation leasing business, with over 2,000 owned and managed aircraft, over 900 owned and managed engines, over 300 owned helicopters and approximately 300 customers around the world.
Aengus Kelly, chief executive of AerCap, said, “We are excited about this opportunity to bring together two leaders in aviation leasing.
AerCap and GECAS both have industry-leading teams, attractive portfolios, diversified customer bases and order books of the most in-demand new technology assets. This combination will enhance our ability to provide innovative and attractive solutions for our customers and will strengthen our cash flows, earnings and profitability.
“GECAS is a highly attractive business and this transaction continues our strong track record of capital allocation. As the recovery in air travel gathers pace, this transaction represents a unique opportunity that we believe will create long-term value for our investors,” added Kelly.
“This business combination will also strengthen our longstanding partnership with GE Aviation, which we look forward to working with closely in the future.”
Under the terms of the agreement, which has been unanimously approved by the boards of directors of AerCap and GE, GE will receive 111.5 million newly issued AerCap shares, $24bn of cash and $1bn of AerCap notes and/or cash.
Upon completion of the transaction, GE is expected to own approximately 46% of the combined company and will be entitled to nominate two directors to the AerCap Board of Directors.