(C) Reuters. FILE PHOTO: The General Electric logo is seen in a Sears store in Schaumburg
(Reuters) – General Electric (NYSE:GE) Co said on Wednesday Ireland’s AerCap Holdings NV would acquire its aircraft-leasing business in a deal valued at more than $30 billion.
The business, known as GE Capital Aviation Services, or GECAS, is one of the world’s biggest jet-leasing companies and leases passenger aircraft made by companies including Boeing (NYSE:BA) Co and Airbus SE (OTC:EADSY).
The deal includes about $24 billion in cash, an about 46% stake in the combined company and $1 billion paid in AerCap notes and/or cash upon closing.
The transaction, which simplifies GE and focuses it on its industrial core — power, renewable energy, aviation, and healthcare – is the latest in a series of divestitures Chief Executive Officer Larry Culp has undertaken since taking the reins in 2018.
GE plans to reduce debt by about $30 billion after closing using transaction proceeds and existing cash sources, the company said.
The deal is expected to close in the fourth quarter of 2021, and the combined company will have more than 2,000 jets, dwarfing rivals by fleet.
Citi and Goldman Sachs (NYSE:GS) have provided AerCap with $24 billion of committed financing for the transaction.
AerCap to buy GE’s aircraft-leasing unit in $30 billion deal
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