GE Capital Aviation Services (GECAS), the aircraft leasing unit of GE
(NYSE:GE), today announced it completed and closed its acquisition of
Milestone Aviation Group, the Dublin-based helicopter lessor, for $1.775
billion plus the assumption or payoff of Milestone’s existing debt.
"The acquisition of Milestone is a key part of our growth strategy for
2015 and beyond as we add an experienced team and expand into a natural
adjacency for us, helicopters," said Norman Liu, president and chief
executive officer.
The acquisition also is in line with GE Capital’s strategic plan of
growing and enhancing value in core areas aligned with GE’s industrial
domains including energy, aviation, oil & gas and healthcare, while
reducing the overall size of GE Capital through the disposition of
non-strategic assets.
Helicopter finance represents a fast-growing sector in aviation. Since
Milestone’s founding in August 2010 by aviation and leasing industry
veteran Richard T. Santulli and other members of the former NetJets
executive management team, the company has quickly grown into a leading
helicopter leasing company. Today, Milestone’s fleet includes 178
helicopters worth $3.0 billion as well as a strong forward order and
option book of 121 firm and option aircraft with an estimated aggregate
purchase price of $2.7 billion with a variety of helicopter
manufacturers. The helicopters in Milestone’s fleet are used in a
variety of industries, and are currently leased to 32 operators in 26
countries.
Santulli will serve as chairman of the helicopter leasing business and
will become an officer of GE. Milestone president Daniel Rosenthal will
serve as president of the business, which will continue to operate as
“Milestone Aviation Group.” Fellow Milestone founding executives John
Burns, Robert Thor Dranitzke, Matthew Harris and Walter Horsting will
continue in their current roles, as will the rest of the Milestone team.
Milestone had been owned by a consortium led by The Jordan Company. Bank
of America Merrill Lynch provided financial advice to Milestone, and
Mayer Brown and Clifford Chance served as Milestone’s legal advisors.
About GE Capital Aviation Services (GECAS)
GECAS, the U.S. and Irish commercial aircraft financing and leasing
business of GE, has a fleet of approximately 1,600 owned and serviced
aircraft with over 230 airlines. With 45+ years of industry experience,
GECAS is recognized as the pre-eminent airline leasing company in the
world, offering a wide range of aircraft types and financing options,
including operating leases and secured debt financing. GECAS also
provides an ever expanding array of productivity solutions including
spare engine leasing, aviation consulting services, and spare parts
financing and management. GECAS, a unit of GE Capital, has offices in 23
cities around the world, and services customers in 75+ countries. (www.GECAS.com)
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About Milestone Aviation Group
Milestone Aviation Group is the world’s leading helicopter leasing
company. Since launching in August 2010, and as of December 31, 2014,
Milestone has acquired a fleet of 178 helicopters worth US $3.0 billion
and supports 31 operators in 25 countries on six continents. The company
has a forward order book of 121 firm and option aircraft with an
estimated aggregate purchase price of US $2.7 billion. These near-term
delivery positions of in-demand helicopters are made available for lease
globally. Milestone partners with helicopter operators worldwide and
supports them through lease financing. The company provides financing
for helicopters serving a variety of industries, including offshore oil
and gas, search and rescue, emergency medical services, police
surveillance, mining and other utility missions. Further information is
available at www.milestoneaviation.com.
About The Jordan Company
The Jordan Company (www.thejordancompany.com),
founded in 1982, is a middle-market private equity firm that manages
funds with original capital commitments in excess of $8 billion with a
32-year track record of investing in and contributing to the growth of
many businesses across a wide range of industries. The senior investment
team has been investing together for over 20 years and they are
supported by the Operations Management Group, which was established in
1988 to initiate and support operational improvements in portfolio
companies. Headquartered in New York, The Jordan Company also has
offices in Chicago and Shanghai.
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