Public investment vehicle Monocle Acquisition has signed a revised merger agreement with aviation aftermarket solutions provider AerSale.
The transaction with a fully diluted enterprise is valued at approximately $300m, which is equivalent to approximately 5.5 times AerSale’s forecasted 2021 adjusted EBITDA.
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Last December, the two sides initially agreed to merge in a deal with an enterprise value of around $430m.
Following the acquisition, the merged company will be named AerSale Corporation and is expected to be publicly traded on the Nasdaq Stock Market.
The revised merger agreement is supported by current AerSale owners Leonard Green & Partners, Florida Growth Fund and the company’s two founders.
It was unanimously approved by the boards of directors of both Monocle and AerSale.
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By GlobalDataCompletion of the deal is subject to approval from shareholder and is expected to be completed early in the fourth quarter.
AerSale co-founder chairman and chief executive officer Nicolas Finazzo said: “I am very proud of the resilience of our business and our team over the past several months.
“This trough represents a buying opportunity we have been waiting a decade for since the financial crisis of 2008 – to acquire mid-technology aircraft that feed our Asset Management Solutions business.
“Further, we are extremely well-positioned to profit from the dramatic increase in stored aircraft, with over 500 mostly mid-technology aircraft stored at our facilities to date, providing us with an unanticipated and highly profitable source of business.
“We also intend to aggressively pursue exciting growth opportunities in e-commerce, air cargo and proprietary engineered solutions.
“We look forward to partnering with the Monocle team, and to the continued support of Leonard Green, as we move forward in building our company.”
The acquisition will be funded by a combination of Monocle’s trust account and common stock in the surviving company to be issued to existing AerSale shareholders.
