NWS Holdings, Chow Tai Fook Enterprises agree to sell aircraft leasing business
- Transaction values Goshawk Aviation at US$6.7 billion
- Combination of SMBC Aviation Capital and Goshawk Aviation would create world’s second-biggest aircraft lessor
Hong Kong’s NWS Holdings and Chow Tai Fook Enterprises have agreed to sell Dublin-based aircraft leasing company Goshawk Aviation to SMBC Aviation Capital in a deal valuing the company at US$6.7 billion.
The transaction will create the second-biggest aircraft lessor globally and the largest Japanese-owned lessor. SMBC is owned by a consortium that includes Japan’s Sumitomo Corporation and Sumitomo Mitsui Financial Corporation.
“Goshawk is a high-quality business with assets and people that complement our own,” Peter Barrett, the chief executive of SMBC Aviation, said in a statement. “The combined business will continue to have a disciplined focus on young, liquid, most-in-demand narrowbody aircraft with one of the most environmentally friendly portfolios of any major leasing company.”
The combined company, which will be based in Dublin, will have a portfolio of 709 owned or managed aircraft, with an additional US$13 billion on order from Airbus and Boeing for 261 narrowbody aircraft.
Planes owned by Goshawk that are located in Russia are excluded from the deal, SMBC said. It was unclear how many of Goshawk’s aircraft are located in Russia.
At the end of last year, Goshawk had a fleet of 222 planes, including outstanding orders, according to its website.
“We are extremely grateful for the partnership, dedication and commitment from every member of Goshawk throughout the years, especially through the recent challenging times the industry has been facing,” Patrick Tsang, the Chow Tai Fook Enterprises chief executive, said.
The deal is the latest in a wave of consolidation in the industry.
Carlyle’s aviation arm also bought Fly Leasing for US$2.36 billion last year, in addition to its acquisition of CK Asset’s aircraft leasing business.
The Goshawk transaction will be financed through a combination of debt and equity and subject to regulatory approval. It is expected to close in the second half of this year.