Aircastle Merger Agreement

AirCastle Merger Agreement: What You Need to Know

AirCastle Limited, a global aircraft leasing company, recently announced that it has entered into a definitive merger agreement with an affiliate of Marubeni Corporation and Mizuho Leasing Company, Limited. Here`s what you need to know about this major move in the aviation industry.

The Details

Under the terms of the agreement, AirCastle will become a privately held company, with Marubeni and Mizuho Leasing acquiring all outstanding shares of the company for $32 per share in cash. The total transaction value is approximately $2.4 billion, including the assumption of debt.

The merger is expected to close in the first half of 2020, subject to customary closing conditions and approval by AirCastle shareholders. Upon completion of the merger, AirCastle will become a wholly-owned subsidiary of MM Air Limited, a newly-formed entity controlled by Marubeni and Mizuho Leasing.

What This Means for AirCastle and the Industry

AirCastle has a portfolio of more than 260 aircraft leased to more than 80 customers worldwide, and the company generated $815 million in revenue in 2018. The merger with Marubeni and Mizuho Leasing is expected to provide AirCastle with additional financial resources and global reach, enabling it to continue to grow and meet the evolving needs of its customers.

The aviation industry has seen a significant amount of consolidation in recent years, as companies seek to lower costs and better compete in a highly competitive market. The AirCastle merger agreement is the latest example of this trend, and it is likely that we will see more mergers and acquisitions in the industry in the coming years.

Conclusion

The merger agreement between AirCastle, Marubeni, and Mizuho Leasing is a significant development in the aviation industry, and it is expected to have a positive impact on AirCastle`s ability to serve its customers and grow its business. As the industry continues to evolve and consolidate, it will be important for companies to stay agile and adapt to changing market conditions.