GE (NYSE:GE) announced today the completion of the combination of its GE Capital Aviation Services business (“GECAS”) with AerCap Holdings N.V. (“AerCap”).
GE Chairman and CEO H. Lawrence Culp, Jr., said, “Completing this strategic transaction is a significant milestone in GE’s transformation to a more focused, simpler, stronger high-tech industrial company. This is a debt story today. The cash proceeds put us in a position to have reduced our debt by approximately $75 billion since the end of 2018, and we gain a meaningful stake in AerCap that we will monetize as the aviation industry recovers. And it is an equity story longer term, substantially simplifying GE to its industrial core. I’d like to thank AerCap and the exceptional GECAS team for their support in creating the combined company that will better serve customers around the world.”
Under the terms of the transaction agreement, GE received total consideration of greater than $30 billion upon closing, including approximately $23 billion in net cash proceeds; 111.5 million ordinary shares equivalent to approximately 46 percent ownership of the combined company, with a market value of approximately $6.6 billion based on the closing share price of $59.04 on October 29, 2021; and $1 billion paid in AerCap senior notes.
