GE Capital Aviation Services (GECAS) has signed a $1.7bn deal to buy Irish helicopter-leasing firm Milestone Aviation.
The acquisition is part of GE Capital’s strategy to strengthen presence in core industrial domains, including energy, aviation, oil and gas and healthcare, while divesting non-strategic assets.
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With this deal, GECAS will be able to expand its leasing operations into helicopters.
GE Capital chairman and CEO Keith Sherin said: "The Milestone acquisition is a great fit for GE, it combines GECAS’ global reach and 45-plus years in leasing commercial jets with a fast-growing helicopter financing platform that will diversify our business and put our capital to work at good returns.
"The addition of Milestone will deepen our domain expertise in aviation and oil and gas, two critical GE industries."
Established in 2010, Milestone Aviation operates $2.8bn worth fleet of 168 helicopters.
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By GlobalDataThe lessor’s helicopters are used in offshore oil and gas, search-and-rescue, emergency medical services and mining platforms, and are leased to 31 operators in 25 countries worldwide.
Milestone Aviation chairman and CEO Richard Santulli said: "In joining GE Capital, Milestone will continue to operate as we always have, committed to our customers and partners, nimble and entrepreneurial, only with an enhanced ability to offer innovative product solutions in a variety of markets around the globe."
The business will continue to operate under the same name, and Santulli and Daniel Rosenthal will assume the role of chairman and president of the leasing unit.
Subject to customary closing conditions, the transaction is expected to be concluded in 2015.
The latest sale of an aircraft leasing unit comes after American International Group sold its leasing business to AerCap Holdings for $7.6bn earlier this year.
Image: The acquisition is part of GE Capital’s strategy to strengthen presence in core industrial domains, including aviation. Photo: courtesy of General Electric.
