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EQT weighs exiting NAC: Bloomberg
Posted on Friday, 09 February 2018 14:01
EQT Partners is considering exiting its two year-plus investment in Nordic Aviation Capital (NAC) via a sale of its 54.0 per cent stake that could value the Danish company at USD 5.00 billion, Bloomberg reported.
Billed as the world’s largest regional aircraft leasing and financing services provider, the business has over 70 airline customers in 48 countries across the Americas, Europe, Africa and the Middle East, Asia and Australia.
Its client roster includes well-known names such as British Airways, Air Canada, Flybe, Aeroméxico and airBaltic.
NAC has 200-plus employees in offices in Denmark, Ireland, Canada, the US and Singapore, and more than 400 planes valued in excess of USD 5.30 billion, according to its website.
Founded in 1990 by Martin Møller, the aviation entrepreneur sold a majority stake to EQT, with KIRKBI Invest as a co-investor, in 2015 in a deal that reportedly valued the aircraft lessor at about USD 3.30 billion.
The investment, made through newly-established NAC Turbo to act as parent to NAV, included a USD 400.00 million debt facility by Deutsche Bank and Citibank.
Over the intervening timeframe, EQT followed a strategic plan focusing on expanding the market position of the business within turboprops while selectively growing in the regional jet market.
Jetscape Aviation and Aldus Aviation, which were involved in leasing and trading Embraer E-jets, joined the group in the financial year ending 30th June 2016.
As at 30th June 2017, NAC had 356 aircraft and total assets of USD 6.60 billion, and over the 12 months its business performance result increased to USD 153.00 million to deliver a return on equity of 22.0 per cent.
The group generated earnings before interest, tax, depreciation and amortisation of USD 530.00 million on sales of USD 644.00 million in 2016-17, up from USD 439.00 million on USD 610.00 million in 2015-16.
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