International Lease Finance Corporation (ILFC), a wholly owned subsidiary of American International Group, Inc. (NYSE: AIG) (AIG), has announced today that it has signed an agreement with AerCap Holdings N.V. ("AerCap") (NYSE: AER) to acquire its AeroTurbine subsidiary.
The acquisition of AeroTurbine will provide synergies and allow ILFC to realize more value from its fleet portfolio. These synergies will maximize the value in the remaining life and ultimate disposition of aircraft and provide a tool to optimize future aircraft portfolio and operational acquisitions. ILFC will be working with AerCap to close the acquisition over the coming months.
ILFC Chief Executive Officer Henri Courpron commented, “The acquisition of AeroTurbine offers a new compelling strategic solution to maximize value across the complete life cycle of an aircraft. The ability to exercise this level of control over our assets will enhance value and as importantly, inspire new dialogue with airlines with respect to their fleet strategies.”
“We are excited about joining ILFC and contributing our expertise to support the management of their fleet. Moreover, the marketing combination of AeroTurbine and ILFC will produce unique and improved product and service offerings for airlines. We look to gain access to new customers as well as a more predictable inventory stream which will drive economies of scale and provide opportunities for longer term parts supply agreements,” said AeroTurbine Chief Executive Officer, Michael King.
Historically, ILFC has identified opportunities to sell aircraft on lease prior to their entering end-of-life phase with part-outs pursued on only a small number of aircraft. The strategic acquisition of AeroTurbine will offer an integrated value proposition increasingly sought by our customers around the world. Citigroup Global Markets Inc. acted as financial advisor to ILFC.
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements related to the anticipated closing of the acquisition and the potential synergies of the combination of AeroTurbine with ILFC. These forward-looking statements reflect ILFC’s current views with respect to future events and are based on assumptions and are subject to risks and uncertainties. ILFC undertakes no obligation to update or revise any forward-looking statements to reflect developments or information obtained after the date of this press release, except as required by law.