AerCap and Genesis to merge in $1.75bn deal

The managements of Dutch aircraft leasing company AerCap Holdings and Westpark, Shannon based Genesis Leasing Ltd announced on Friday that the two companies would merge in an all share for share transaction. Under the terms of the deal valued at $1.75bn, Genesis will become a wholly owned subsidiary of AerCap which will continue to be led by CEO Klaus Heinemann and CFO Keith Helming. The new company will retain the AerCap name. Three Genesis directors will be nominated for election ot the Board of the new company at an EGM to be held following completion of the deal.
The chief executive of Genesis is John McMahon who began his career at Aer Lingus before moving to GPA. In 1995 he joined Daimler as part of the team that established Debis AirFinance which later became AerCap.
AerCap's CEO Heinemann commented that "Following this transaction, AerCap will become the leading independent franchise within the global aircraft leasing sector, with 116 airline customers in 50 countries and a lease portfolio currently valued at $6 billion, with another 83 aircraft on order or under purchase contract."
As part of the agreement, GE Capital Aviation Services (GECAS), which has acted as servicer for Genesis’ portfolio, will continue to provide most asset management services for the Genesis fleet in the near term. GECAS has, however, agreed to AerCap's request for an early termination of the former's services.
Additionally, AerCap has signed a letter of intent to purchase 13 aircraft from GECAS. The purchase of two aircraft is expected to occur by the end of September 2009 with the purchase of the balance expected to take place subject to the merger taking place. The combined company will have a total fleet of 358 commercial aircraft and 83 engines that are either owned, on order, under contract or managed. Average fleet age is 6.6 years.