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17-May-2022 11:26 AM

SMBC Aviation Capital to acquire Goshawk Aviation to create world's second largest leasing company

SMBC Aviation Capital reached (16-May-2022) an agreement with NWS Holdings and Chow Tai Fook Enterprises to acquire Goshawk Aviation for an enterprise value of USD6.7 billion. Details include:

  • The combined business will continue to operate as SMBC Aviation Capital and will consist of a single corporate structure incorporated in Ireland, with headquarters in Dublin. The transaction is subject to regulatory approvals and other closing conditions and is expected to close in 2H2022;
  • SMBC will acquire a portfolio of 176 owned and managed aircraft. The combined fleet will include 709 owned and managed aircraft, 82% of which are narrowbody aircraft, with another 261 A320neo and Boeing 737 MAX aircraft on order valued at USD13 billion;
  • The acquisition will expand SMBC's total assets to approximately USD37 billion, including its order book;
  • Any Goshawk aircraft that are located in Russia and subject to EU sanctions are excluded from the transaction;
  • The acquisition will add 24 new airline customers for SMBC;
  • The transaction will be financed through a combination of debt and equity. Debt financing will be sourced from SMBC shareholders and the bank and capital markets. Equity will be provided by Sumitomo Mitsui Financial Group and Sumitomo Corporation;
  • SMBC stated the transaction "will create the largest Japanese owned aircraft lessor and the second largest global player by number of aircraft".

SMBC Aviation Capital CEO Peter Barrett stated: "The combined business will continue to have a disciplined focus on young, liquid, most in demand narrowbody aircraft". He added: "We are undertaking this transaction at a strategic point in the cycle with a strong recovery building across the global airline industry and we expect the transaction to be accretive to SMBC Aviation Capital's return on capital". [more - original PR - SMBC] [more - original PR - Goshawk] [more - original PR - NWS]

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