Australia-based Macquarie Group has agreed to buy a portfolio of 90 passenger aircraft from Irish aircraft lessor AWAS Aviation Capital for $4bn.
The aircraft fleet being purchased is leased to 40 airlines worldwide, having a weighted average age of approximately two years.
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Majority of the aircraft in the portfolio comprise narrow-body Airbus A320-200 and Boeing 737-800 aircraft.
The acquired aircraft will nearly double Macquarie’s fleet size to 220 airliners.
Macquarie AirFinance, the aircraft leasing division of Macquarie’s Corporate and Asset Finance group (CAF), will operate the acquired AWAS aircraft.
Macquarie transportation finance head Stephen Cook said: "This transaction allows us to acquire high quality assets.
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By GlobalData"It complements our existing aircraft leasing portfolio and diversifies our client base."
The company plans to use existing funding sources, third-party financing arrangements and raise A$600m ($468.5m) to finance the aircraft purchase.
Subject to customary closing conditions, the acquisition is expected to be concluded over the next 12 months.
Macquarie Group CEO Nicholas Moore said: "This acquisition builds on the strong growth of our Corporate and Asset Finance business and the ongoing investment in our annuity-style businesses."
The deal is expected to be accretive to Macquarie’s earnings per share and return on equity, and add A$115m ($89.8m) to its net profit annually over five years.
AWAS said it will continue to operate the remaining of more than 200 aircraft, and plans to grow its fleet through sale-leaseback transactions.
AWAS is jointly owned by Terra Firma and Canada Pension Plan Investment Board with 75% and 25% stakes respectively.
Image: The acquired aircraft will nearly double Macquarie’s fleet size to 220 airliners. Photo: courtesy of Boeing.
