AerCap Holdings N.V. (NYSE: AER) reported entry into a definitive agreement with General Electric (NYSE: GE) where AerCap will acquire 100% of GE Capital Aviation Services. The combined company will lead in aviation leasing with over 2,000 owned and managed aircraft with over 900 owned and managed engine, including 300 owned helicopters and 300 customers worldwide. Aengus Kelly, Chief Executive Officer of AerCap, said, “We are excited about this opportunity to bring together two leaders in aviation leasing. AerCap and GECAS both have industry-leading teams, attractive portfolios, diversified customer bases and order books of the most in-demand new technology assets. This combination will enhance our ability to provide innovative and attractive solutions for our customers and will strengthen our cash flows, earnings and profitability.
“GECAS is a highly attractive business and this transaction continues our strong track record of capital allocation. As the recovery in air travel gathers pace, this transaction represents a unique opportunity that we believe will create long-term value for our investors,” added Mr. Kelly. “This business combination will also strengthen our longstanding partnership with GE Aviation, which we look forward to working with closely in the future.”
GE Chairman and CEO, H. Lawrence Culp, Jr., said, “AerCap is the right partner for our exceptional GECAS team. Combining these complementary franchises will deliver strategic and financial value for both companies and their stakeholders. Together we’re creating an industry-leading aviation lessor with expertise, scale and reach to better serve customers around the world, while GE gains both cash and upside in the stronger combined company as the aviation industry recovers.”