Bohai Leasing Completes Acquisition of Avolon Holdings, Ltd
Bohai Leasing (“Bohai”) announces the completion of its acquisition of Avolon Holdings, the international aircraft leasing company.
As a wholly-owned subsidiary of Bohai, Avolon will be combined with Bohai’s existing aircraft leasing businesses to form the world’s 4th largest aircraft leasing firm inclusive of orders. In completing the acquisition Bohai is taking a large step towards its goal to become amongst the top 3 aircraft leasing companies in the world.
· Avolon is now a wholly-owned, indirect subsidiary of Bohai Leasing, a global leader in transportation (container and aircraft) asset leasing;
· Bohai is the only listed leasing company on the Chinese A-Share stock market and is majority owned by HNA Group, a Fortune 500 company with global interests in a range of sectors including aviation, leasing, logistics, tourism and transportation;
· Bohai will continue Avolon as the core aircraft leasing brand for Bohai Leasing and its parent, HNA Group. Bohai will combine its Hong Kong Aviation Capital (HKAC) aircraft leasing business into Avolon;
· Including Avolon, HKAC and other aircraft leasing assets, Bohai will now have a total fleet of more than 500 aircraft - the world’s fourth largest aircraft leasing business by asset value;
· Avolon will remain headquartered in Dublin, with a strategic Asian regional head office in Hong Kong and offices in Dubai, Shanghai, Singapore and the United States;
· Bohai Leasing will retain Avolon’s management team, all of whom remain with the integrated business which has a total employee base of 88 people;
· HNA Group, majority owner of Bohai Leasing, continues to expand its extensive interests in the aviation sector globally including:
1. Interests in 25 airlines: 20 in China along with airlines in Brazil, France, Portugal, South Africa and Turkey;
2. Owner of 9 airports in China with a stated ambition to invest in airports in other markets;
3. Owner of myTechnic, a large European aviation maintenance, repair and overhaul (MRO) business;
4. Owner of Swissport, the world’s leading provider of ground and cargo handling services to the aviation industry with a presence at over 270 airports in 48 countries on five continents;
· As part of Bohai and the HNA Group, Avolon has a medium-term objective to become a top 3 aircraft lessor globally.
Chris Jin, CEO of Bohai Leasing, said:
“Avolon is a leader in the aircraft leasing industry with a strong track record and a leading global platform. We are delighted to welcome Avolon to Bohai and the wider HNA family. Our aircraft leasing interests, now operating under the Avolon brand, position us as the world’s fourth largest aircraft lessor. This position is consistent with our corporate vision at Bohai - which is to build each of our transportation finance businesses into global leaders.
“The Avolon team has delivered remarkable growth over the past 6 years to become a leading industry franchise with a distinct business model and together we are now entering another exciting phase of growth.”
Adam Tan, President of HNA Group, commented:
“HNA continues to invest across a range of sectors which we believe offer strong, sustainable returns. The aviation sector has been at the core of the HNA business since it was founded and we are pleased to have acquired a successful business and proven management team in Avolon who share our ambitious growth plans. Bohai now has two of the world’s leading leasing businesses – in container and aircraft leasing – and we are committed to continuing to invest in their future success in their respective sectors.”
Avolon CEO, Dómhnal Slattery, added:
“The completion of our acquisition by Bohai is an exciting step in the development of Avolon. We are delighted to be part of Bohai and the wider HNA Group who share our ambitious growth plans. With a fleet of over 500 aircraft, we are now the world’s fourth largest aircraft leasing firm.
“The Avolon management team remains committed to the business and we see significant opportunities for growth under Bohai’s ownership. We have a proven management team, a strong market position and a parent with the industry experience and financial strength to support our objective to become a top 3 player in the industry.”