BAE Systems has agreed to sell BAE Systems Asset Management (BSAM), its commercial aircraft lease portfolio and asset management business to investment affiliates of Fortress Investment Group. The sale, which is expected to close in 3Q2011, is for a cash consideration of USD187 million. Fortress has USD43.1 billion in global investments as of 31-Mar-2011.
Completion is conditional, amongst other things, upon regulatory approval. BSAM is the world's second largest regional jet lessor by fleet value and the tenth largest aircraft lessor by fleet size. It has 16 lease customers in 11 countries. The business is responsible for the management of 151 commercial aircraft owned by BAE Systems. The support and engineering activities of BAE Systems Regional Aircraft are not included in this sale.
Shares in regional lessor Aerocentury dropped 6%, the largest single-day fall for the company since 14-May-2011.
Selected Lessors daily share price movements (% change): 26-May-2011