SHANNON-based aircraft leasing company Genesis Lease has formally announced that it is to merge with like-minded Dutch company AerCap in a $1.75 billion (€1.19bn) deal mere days after confirming the two were in talks.
Under the deal — which is subject to shareholder approval and is likely to be completed sometime during the final three months of the year — Genesis will become a wholly-owned subsidiary of AerCap, with the enlarged business going under the Dutch firm’s name.
The deal will also make AerCap, which already has a presence at Shannon, the number one independent franchise within the global aircraft leasing sector, with some 116 airline customers across 50 countries and a portfolio of operations valued at $6bn, as well as a further 83 aircraft on order.
The enlarged company — once the Genesis deal goes through — will have a total fleet of 358 commercial aircraft.
Chairman and chief executive of Genesis John McMahon said that the deal is based on delivering shareholder value.
“This transaction provides our shareholders with a significant and immediate premium to recent stock trading levels and positions them to participate in enhanced earnings and business growth in the future,” he said.
“The merger of Genesis and AerCap enhances the cash generation of the combined company in the current environment to pursue our growth objectives and capitalise on opportunities as the market recovers.
The similarity of our respective aircraft portfolios, combined with AerCap’s substantial order book, makes this an attractive transaction for all stakeholders,” added AerCap’s chief executive Klaus Heinemann.
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