“AerCap, the global leader in aircraft leasing, announced today that it has entered into a definitive agreement with General Electric under which AerCap will acquire 100% of GE Capital Aviation Services, GE business,” the Irish company said in a statement.
Confirming rumors, AerCap announced on Wednesday that it will acquire GE Capital Aviation Services (GECAS), forming the largest aircraft leasing group in the world, with a fleet of more than 2,000 planes.
General Electric, in turn, will become a partner in the new corporate arrangement, with a 46% stake. AerCap will pass on 111.5 million newly issued shares, $24 billion of cash and $1 billion of AerCap notes and/or cash.
“This combination will enhance our ability to provide innovative and attractive solutions for our customers and will strengthen our cash flows, earnings and profitability,” said Aengus Kelly, Chief Executive Officer of AerCap.
“Combining these complementary franchises will deliver strategic and financial value for both companies and their stakeholders. Together we’re creating an industry-leading aviation lessor with expertise, scale and reach to better serves customers around the world, while GE gains both cash and upside in the stronger combined company as the aviation industry recovers,” explained H. Lawrence Culp, Jr., GE Chairman and CEO.
The transaction, however, is expected to be completed only in the last quarter of 2021. According to the note, the new company will retain the name AerCap while GECAS will become a group business.
In addition to the 2,000 planes, the new lessor will also have in its portfolio more than 900 engines and 300 helicopters among its approximately 300 customers worldwide.