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TC to take full control of ACG
Posted on Monday, 09 September 2019 14:32
Tokyo Century (TC) is acquiring the remaining 75.5 per cent stake not already held in Aviation Capital Group (ACG) from Pacific Life Insurance for USD 3.00 billion to bolster operations within speciality financing.
Billed as “one of the longest standing and one of the world’s premier full-service aircraft leasing companies”, the Californian business in question has 500 owned, managed and committed planes, as of 30th June 2019.
It leases its fleet to more than 90 airlines in over 45 countries and booked net profit of USD 266.00 million on total revenue of USD 1.05 billion in the 12 months ended 31st December 2018.
TC bought a fifth of ACG from Pacific Life in December 2017 and further increased its ownership stake to 24.5 per cent in March 2019 through the acquisition of newly-issued shares.
By acquiring the remaining interest, the Japanese company will “be able to actively take initiatives in the aircraft operating lease business”.
TC said it can “improve its aviation business value chain through organic collaboration among its among its own aviation financing” operations.
Partnerships will be driven by Japanese operating lease products and aircraft aftermarket-related activities leveraging the used aircraft and parts knowledge of GA Telesis, in which the group has a 49.2 per cent stake
TC, via wholly-owned subsidiary TC Skyward, is making the acquisition at a time when global demand for commercial planes is forecast to continue to rise.
Increased growth will be in line with that of passenger transportation in emerging countries and low-cost carriers.
TC is taking advantage of the fact the number of passenger jets in operation is expected to increase to meet these requirements, not to mention the rate of aircraft operating leases by airlines,
Zephyr, the M&A database published by Bureau van Dijk, shows the USD 3.00 billion price tag makes the deal one of the top 25 by value targeting the global rental and leasing sector on record.
© Zephus Ltd