AerCap Holdings has signed a definitive agreement with American International Group (AIG) to acquire complete stake in International Lease Finance Corporation (ILFC), the aircraft leasing business of AIG.
Under the terms of the deal, AIG will receive a total consideration of $3bn in cash and 97,560,976 AerCap shares, bringing the total value of the transaction to $5.4bn.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
AerCap CEO Aengus Kelly said that the company’s acquisition of ILFC will create a global franchise in the aircraft leasing industry.
"This transaction presents a unique strategic opportunity to bring together the outstanding and experienced personnel from both companies and two attractive portfolios of modern aircraft on lease to a highly diversified customer base," Kelly said. "We believe AerCap will now have the most attractive order book in the industry.
"With these combined resources, along with a strong liquidity profile, we will drive high levels of stable long-term profitability and cash flows for the benefit of all our stakeholders."
Following the deal, the combined entity will retain the name AerCap, with ILFC becoming a wholly-owned subsidiary of AerCap. AIG will have a right to nominate two directors for election to the board of directors of AerCap.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe combined portfolio will concentrate on modern, fuel efficient aircraft, with more than 85% of the fleet by value comprising A320, A330, Boeing 737NG and Boeing 777 family jets.
In addition, AerCap can take advantage of more than $25bn of future aircraft deliveries that are currently in the combined order book.
The acquisition is expected to conclude in the second quarter of 2014, subject to approval by AerCap shareholders, receipt of required regulatory approvals and satisfaction of other customary closing conditions.
