MIAMI – Shareholders of AerCap Holdings N.V. have approved the previously announced acquisition of GE Capital Aviation Services (GECAS) from General Electric (GE).
Subject to regulatory approvals, Dublin, Ireland-based AerCap will take over GECAS’s inventory of more than 1,600 aircraft leased to customers around the world.
The deal was first announced on March 10. GE will receive consideration valued at more than US$30bn, including approximately US$24bn in cash, 111.5 million ordinary shares equivalent to approximately 46 percent ownership of the combined company, and US$1bn paid in AerCap notes and/or cash upon closing.
Deal Simplifies GE
GE previously stated that selling its aircraft leasing business “marks GE’s transformation to a more focused, simpler, and stronger industrial company” concentrating on power, renewable energy, aircraft engines and healthcare while reducing debt.
After the deal closes, GE intends to use the transaction proceeds and its existing cash sources to reduce debt by approximately US$30bn. GE will transfer US$34bn of GECAS’s net assets, including its engine leasing and Milestone helicopter leasing businesses, to AerCap. Current GECAS purchase obligations will transfer to AerCap, and more than 400 GECAS employees also will transfer to AerCap upon completion of the transaction.
The combined company will be one of aviation leasing’s leading franchises, bringing together complementary portfolios across aircraft, engines, and helicopters. AerCap serves approximately 200 customers in 80 countries with comprehensive fleet solutions with offices in Dublin, Shannon, Los Angeles, Singapore, Amsterdam, Shanghai, Abu Dhabi, Seattle and Toulouse.
Featured image Courtesy of Boeing