Avolon officially completed the acquisition of the aircraft leasing business of CIT Group yesterday (April 4). With this transaction Avolon has doubled its size to become the third largest aircraft lessor with a combined fleet, as of 31 December, 2016, of 868 aircraft valued at over US$43 billion, with an average aircraft age of 4.7 years.
Avolon has expanded its customer based into 62 countries serving 149 customers, with one third of in-service aircraft leased into each of the Americas, EMEA and Asia-Pacific regions.
Avolon’s total orders and commitments for 301 aircraft include: 196 Airbus aircraft (A320neo family, A330neo and A350); 61 Boeing 737 MAX aircraft; and 25 Boeing 787 aircraft.
Avolon says that the combined business is “well capitalised to pursue further growth opportunities across multiple acquisition channels; Avolon’s balance sheet is strong with a long-term strategic shareholder committed to the sector.”
Avolon CEO, Dómhnal Slattery, said: “We are pleased to announce the completion of our acquisition of the CIT aircraft leasing platform. We have acquired an excellent franchise with a stellar reputation in the market. Our immediate priority is to integrate the businesses under the Avolon brand.”
He adds: “We would also like to acknowledge the contribution of Jeff Knittel and Tony Diaz in building the CIT aircraft leasing franchise and wish them well in their future endeavours.”
Avolon’s financial advisors for the transaction were UBS Investment Bank and Morgan Stanley & Co. LLC. Weil, Gotshal & Manges LLP, Clifford Chance LLP and Maples and Calder acted as Avolon’s legal advisors. KPMG and E&Y also advised on the transaction.