Dubai Aerospace Enterprise acquires Nordic Aviation Capital
The acquisition is expected to be completed in the first half of 2025.
In a significant move that is set to reshape the global aircraft leasing landscape, Dubai Aerospace Enterprise (DAE) Ltd has announced the signing of a definitive agreement to acquire 100% of Nordic Aviation Capital (NAC).
The acquisition, which is subject to regulatory approvals and shareholder approval, is expected to be completed in the first half of 2025. The terms of the transaction were not disclosed.
NAC, which was founded over 30 years ago, has a fleet of 252 owned and committed assets on lease to approximately 60 airline customers in around 40 countries. The acquisition will significantly expand DAE's fleet, which currently comprises around 500 aircraft.
Following the acquisition, DAE Capital's fleet will comprise approximately 750 owned, managed, and committed aircraft, with a total value of around $22 billion. The expanded fleet will be on lease to around 170 airline customers in approximately 70 countries.
Firoz Tarapore, Chief Executive Officer of DAE, commented on the acquisition, saying, "We are delighted at this opportunity to add NAC’s capabilities, complementary market presence, and people to our platform. This transaction will allow us to provide more cost-effective solutions to a larger group of customers."
The acquisition is expected to be funded through a combination of internal resources and committed debt financing. DAE has stated that its leverage and funding metrics will remain within levels consistent with its credit ratings.
DAE was advised on the transaction by Allen Overy Shearman Sterling LLP and KPMG.
The acquisition is a significant milestone for DAE, which has established itself as a leading player in the global aircraft leasing market. The company's expanded fleet and increased global presence are expected to provide significant benefits to its customers and stakeholders.
