Monday 28 May 2018

Avolon is to look at M&A opportunities to expand

Domhnal Slattery, Chief Executive of Avolon. Photo: Robbie Reynolds
Domhnal Slattery, Chief Executive of Avolon. Photo: Robbie Reynolds

Dublin-based Avolon will have to pursue merger and acquisition (M&A) activity if it is to meet its stated goal of doubling the size of its balance sheet in the next five to seven years, its co-founder, Domhnal Slattery, has said.

Mr Slattery told the Global Airfinance Conference in Dublin yesterday that he hoped to grow the combined company's balance sheet to $40bn, from around $20bn now.

"To get to that, in the times we're in, we will have to pursue M&A," Mr Slattery said.

China's Bohai Leasing completed its $7.6bn acquisition of Avolon earlier this month, paving the way for the formation of the world's fourth-largest air lessor by asset value.

Mr Slattery has previously said that the company expects to see more opportunities for acquisitions in the course of the coming year or two and that he hopes to become one of the top three air lessors in the world.

Avolon was co-founded in 2010 by Mr Slattery, chief financial officer Andy Cronin, and chief commercial officer John Higgins.

The company has about 144 owned aircraft and 10 managed aircraft in its fleet. It has about 104 aircraft on order.

It floated on the New York Stock Exchange in December 2014 and its shares ceased trading following the takeover by Bohai, which is owned by China's HNA Group.

Having combined with HNA and Bohai's other leasing interests, the enlarged group is now the world's fourth-largest aircraft lessor, with a fleet of about 500 jets.

Avolon will be the core aircraft leasing brand for Bohai Leasing and HNA, and assumes management of the Hong Kong Aviation Capital business, another Bohai subsidiary.

Irish Independent

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