GE Capital Aviation Services, the aircraft leasing unit of GE, has announced the signing of an agreement to acquire Milestone Aviation Group, the Dublin-based helicopter lessor, for
$1.775bn.
“The Milestone acquisition is a great fit for GE," said
Keith Sherin, chairman & CEO, GE
Capital, "it combines GECAS’ global reach and 45+ years in leasing commercial jets with a
fast-growing helicopter financing platform that will diversify our business and put our capital to work at good
returns. The addition of Milestone will deepen our domain expertise in aviation and oil and gas, two critical GE industries,”
he added.
"The acquisition is in line with GE Capital’s strategic plan of growing and enhancing value in
core areas aligned with GE’s industrial domains including energy, aviation, oil & gas and
healthcare, while reducing the overall size of GE Capital through the disposition of non-strategic
assets such as the recently executed IPO and planned split-off of our North American
Retail Finance business and the sale of our consumer banks in the Nordics."
Helicopter finance represents a fast-growing sector in aviation. Since Milestone’s founding in August 2010 by aviation and leasing industry veteran
Richard T. Santulli and other members
of the former NetJets executive management team, the company has quickly grown into a leading helicopter leasing company.
Today, Milestone’s fleet includes 168 helicopters worth $2.8bn as well as a strong forward order and option book of $3bn with a variety of helicopter manufacturers. The helicopters in
Milestone’s fleet are primarily used in offshore oil and gas, search and rescue, emergency medical services and mining, as well as other industries, and are currently leased to 31
operators in 25 countries.
“In joining GE Capital, Milestone will continue to operate as we always have
- committed to our customers and partners, nimble and entrepreneurial - only with an enhanced ability to offer
innovative product solutions in a variety of markets around the globe,” said Milestone chairman and CEO Santulli. “Four
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Richard T. Santulli |
years ago, Milestone pioneered a new industry by providing
much-needed capital for high-quality helicopter operators around the world. Thanks to partners like The Jordan
Company and Nautic Partners, who have been with us since day one, I am
proud to say that our core values of service and commitment to customers and manufacturing partners are
stronger than ever and will continue to strengthen going forward.” |
Santulli will serve as chairman of the helicopter leasing business and will become an officer of GE. Milestone president
Daniel Rosenthal will serve as president of the business, which
will continue to operate as “Milestone Aviation Group.” Fellow Milestone co-founding executives
John Burns,
Robert Thor Dranitzke and
Matthew Harris will continue in their current
roles, as will the rest of the Milestone team.
“We look forward to working with GE, a clear market leader in multiple related spaces, to achieve new and even greater successes for our customers and partners,” said Rosenthal. “As
part of GE, Milestone will continue to operate under the same operating approach and leadership team, only with the added benefit of GE’s resources and capital. We are proud of our
team’s incredible accomplishments over these last four years and are thrilled at the knowledge that we’re only just getting started.”
“The Milestone management team is among the most experienced leadership team in aviation financing, having worked together to pioneer the concept of fractional jet ownership with the
founding and development of NetJets, then moving on to the creation and phenomenal growth of Milestone. The knowledge and passion they bring to GE will help ensure the success of
this business,” said Norm
Liu, president & CEO, GECAS.
The transaction remains subject to customary closing conditions, including regulatory approvals, and is targeted to close in 2015.
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