Avolon Holdings Ltd (NYSE:AVOL) has completed the acquisition of the aircraft leasing business from CIT Group Inc. (NYSE:CIT) for $10.38 billion.
Following the sale of the aircraft leasing business, CIT has exited the commercial aircraft leasing business.
Avolon said that the acquisition doubled its size and helped in creating the world’s third-largest aircraft leasing platform. The aircraft leasing company said that the combined business is in a better position to pursue further growth opportunities across multiple acquisition channels.
Avolon is the world’s third largest aircraft leasing business, with a fleet of 868 aircraft valued at over $43 billion as of December 31, 2016. The company serves 149 customers in 62 countries with approximately one-third of in-service aircraft leased into each of the Americas, EMEA and Asia-Pacific regions.
“We are pleased to announce the completion of our acquisition of the CIT aircraft leasing platform. We have acquired an excellent franchise with a stellar reputation in the market. Our immediate priority is to integrate the businesses under the Avolon brand,” Avolon CEO Dómhnal Slattery said in a statement.
UBS Investment Bank and Morgan Stanley & Co. LLC served as Avolon’s financial advisors, while Weil, Gotshal & Manges LLP, Clifford Chance LLP and Maples and Calder acted as legal advisors to Avolon. KPMG and E&Y also advised on the transaction.
Headquartered in Ireland, Avolon Holdings Ltd (NYSE:AVOL) provides aircraft leasing and lease management services. It is a subsidiary of Bohai Capital Holding, a Chinese public company listed on the Shenzhen Stock Exchange.
Shares of CIT Group Inc. (NYSE:CIT) closed up 3.59% on Tuesday. The stock is up 3.14% year-to-date. During the last 12 months, CIT has surged 41%.