G.E. Capital Aviation Services (GECAS), the Aircraft leasing division of General Electric revealed on Oct.13, Monday that it is set to buy helicopter-leasing company, Milestone Aviation Group in a deal amounting to $1.78 billion.
"The Milestone acquisition is a great fit for GE-it combines GECAS' global reach and 45+ years in leasing commercial jets with a fast growing helicopter financing platform that will diversify our business and put our capital to work at good returns," Chief Executive of G.E. Capital, Keith S. Sherin said in an official statement released by GE.
"The addition of Milestone will deepen our domain expertise in aviation and oil and gas, two critical G.E. industries," Sherin continued.
The acquisition will reportedly add 168 helicopters worth $2.8 billion to its current portfolio.
The move is part of GE Capital's strategy to expand and develop "core areas" in different facets of GE's industries from energy, oil and gas, healthcare and aviation, at the same time narrowing down the size of GE Capital through "removal" of assets that prove to be unaligned with their initial goal.
GE recently split-off with North American Retail Finance business and sold several consumer banks in Nordics.
Helicopter finance proved to be an emerging business in the aviation industry, according to the statement.
Ever Since Milestone Aviation started out back in 2010, founder Richard T. Santulli has been a formidable player in the aviation industry with an extensive knowledge and experience.
Meanwhile, Santulli, who will remain chairman of the helicopter leasing business, will also take on a new role as officer of GE. He expressed his gratitude and welcomed the deal wholeheartedly.
"In joining GE Capital, Milestone will continue to operate as we always have-comitted to our customers and partners, nimble and entrepreneurial-only with an enhanced ability to offer innovative product solutions in a variety of markets around the globe," stated Santulli.
