International aircraft leasing business Avolon, a wholly owned subsidiary of Bohai Capital, is to acquire the aircraft leasing operations of CIT Group, creating a business with an owned, managed and committed fleet of 910 aircraft valued at over USD43 billion.
The transaction is subject to customary closing conditions and required regulatory approvals and is expected to close in the first quarter of 2017.
Avolon chief executive Dómhnal Slattery says: “From a standing start we will have built Avolon into a leading global player in six years. We are delighted to announce an agreement to acquire the CIT aircraft leasing platform. It is a strong business with an excellent reputation in the market. While this transaction is strategically compelling and will double the scale of Avolon, it is not the summit of our ambition. Avolon has a strong brand, a best-in-class fleet, a proven business model and a long-term strategic shareholder committed to the sector. We look forward to continuing to drive the disciplined growth of the business in the years ahead.”
Chris Jin, CEO of Bohai, says: “Our vision at Bohai is to build each of our transportation finance businesses into global leaders. Our decision to acquire Avolon in 2015 was a key step towards that objective. The Avolon team has already delivered remarkable growth in building a new platform into a leading industry franchise. They are now taking a further exciting step towards our collective goal to become a true global leader in transport finance. We are confident in the prospects for the enlarged business which has a strong, proven team and the operating disciplines to drive sustainable performance.”
