AerCap completed its acquisition of GE Capital Aviation Services from General Electric. The combined company will serve approximately 300 customers around the world.
AerCap now has a portfolio of more than 2,000 aircraft, more than 900 engines and more than 300 helicopters, as well as an order book of approximately 450 aircraft. The aircraft fleet represents approximately 90% of the assets of the combined company. New technology aircraft are expected to make up 75% of the aircraft fleet by 2024.
“Completion of this transaction represents an important milestone for AerCap that will generate benefits for our customers, partners, employees and investors for many years to come,” Aengus Kelly, CEO of AerCap, said. “In GECAS, AerCap has acquired the right business, for the right price, at the right time, as air travel continues to recover from the pandemic and demand for aircraft leasing continues to accelerate. Many years of dedication and commitment by AerCap and GECAS’ hard-working teams have produced an expanded portfolio comprised of the industry’s most in-demand aviation assets. Our scale and capabilities enable us to provide comprehensive, innovative and tailor-made fleet solutions to our customers that are unrivaled in the leasing industry. I would like to thank Larry Culp and his team at GE and the entire team at GECAS, led by Greg Conlon, for their support and cooperation throughout this process.”
“The combination of GECAS and AerCap will deliver significant value for both companies and their stakeholders,” H. Lawrence Culp Jr., chairman and CEO of GE, said. “This strategic transaction marks significant progress in GE’s transformation to a more focused, simpler, stronger high-tech industrial company, and I’d like to thank AerCap and the exceptional GECAS team for their support in creating the combined company that will better serve customers around the world.”
Under the terms of the transaction agreement, GE received 111.5 million newly issued AerCap shares, approximately $23 billion of cash and $1 billion of AerCap notes. GE now owns approximately 46% of AerCap’s outstanding shares.
In connection with the transaction, Jennifer VanBelle joined the board of directors of AerCap, bringing the number of members serving on AerCap’s board of directors to 10.
Citi and Morgan Stanley acted as financial advisors and Cravath, Swaine & Moore; NautaDutilh; and McCann Fitzgerald acted as legal advisors to AerCap in connection with the acquisition.
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