SMBC Aviation Capital will acquire Dublin-based Goshawk Aviation for $6.7 billion, creating the largest Japanese owned aircraft lessor and the second largest global player by number of aircraft, with assets of approximately $37 billion.
On Monday (May 16, 2022), SMBC Aviation Capital announced that they have reached an agreement with Goshawk Aviation’s Hong Kong-based owners, NWS Holdings Limited and Chow Tai Fook Enterprises Limited, to acquire the Dublin-based aircraft lessor for $6.7 billion. The combined entity will be the largest Japanese owned aircraft lessor and the second largest global player by number of aircraft with assets totaling approximately $37 billion, including orderbook. With the acquisition, SMBC will accelerate their growth with a strategic focus on young narrowbody aircraft, which represents over 82 percent of the combined fleet of more than 709 owned and managed aircraft, along with 261 Airbus A320neo and Boeing 737 MAX Family aircraft on order. Any Goshawk-owned aircraft that are located in Russia and subject to EU sanctions will be excluded from the transaction.
In Monday’s announcment, SMBC Aviation Capital’s Chief Executive Officer, Peter Barrett, said,
“This is the right transaction for SMBC Aviation Capital, allowing us to better serve our customers in a fast-evolving sector whilst also accelerating our growth and delivering significant value for our shareholders. Goshawk is a high-quality business with assets and people that complement our own. 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 together with 261 new generation, fuel efficient aircraft on order.
“We are undertaking this transaction at a strategic point in the cycle with a strong recovery building across the global airline industry and we expect the transaction to be accretive to SMBC Aviation Capital’s return on capital.”
Also commenting on the Goshawk Acquisition, Sumitomo Mitsui Finance and Leasing Co., Limited’s President, Masaki Tachibana, said,
“The 2012 acquisition of SMBC Aviation Capital has proven to be very successful and it is now a key strategic business for our group. As we enter this new cycle, SMBC Aviation Capital will be a core component in the growth of our international business. The shareholder is fully supportive of the proposed acquisition of Goshawk, which will further cement the group’s position as a leading player in the aviation financing sector.”
Through the acquisition, SMBC will add 24 new airline customers not currently served by the company. The combined business will operate as SMBC Aviation Capital under a single corporate structure incorporated in the Republic of Ireland, with headquarters in Dublin. The transaction is expected to close during the second half of 2022, subject to regulatory approvals and other closing conditions.
Established in 2001, Dublin-based SMBC Aviation Capital is one of the world’s leading aircraft lessors and currently serves 85 airline customers in 36 countries. The company has an owned and managed and committed portfolio of 720 aircraft. In 2012, SMBC was acquired by a consortium of two of Japan’s biggest companies, Sumitomo Mitsui Financial Group (SMFG) and Sumitomo Corporation.
Source: SMBC Aviation Capital