Monocle Acquisition Corporation (MNCL) and AerSale have agreed to merge in a deal with an enterprise value of around $430m.
Known as the AerSale Corporation, the merged entity will be publicly traded on the Nasdaq Stock Market.
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AerSale’s existing shareholders, including Leonard Green & Partners, will be entitled to receive $250m in cash and $150m in newly issued common equity upon closing.
The cash amount can be reduced under certain conditions but no less than $200m in exchange for the issuance of up to $50m of convertible preferred equity.
The shareholders will also receive $33m in additional value in stock consideration.
AerSale is owned by Leonard Green & Partners, Florida Growth Fund and the company’s founders Nicolas Finazzo and Robert Nichols.
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By GlobalDataThe company is involved in the supply of aftermarket aircraft, spare engines, flight equipment, maintenance, repair and overhaul services, as well as used serviceable material support globally.
Monocle chief executive officer and president Eric Zahler said: “AerSale aligns perfectly with the investment criteria we outlined throughout Monocle’s IPO process.
“AerSale has created significant competitive advantages through regulatory streamlining, data capture and analytics, long-term customer relationships, and its integrated business model.
“We are acquiring this business at an attractive valuation relative to public aerospace peers while providing significant potential to generate shareholder value over the near-term and long-term.”
After the deal, Leonard Green & Partners, Florida Growth Fund and members of AerSale’s management team will hold a 42% stake in the merged company.
Public stockholders, including the founders of MNCL, will hold the remaining shares of the combined company.
The deal is expected to close in the first half of next year.
