Monocle Acquisition Corporation, a public investment vehicle, and AerSale Corp., an integrated, global provider of aviation aftermarket products and services, announced that they have entered into a definitive agreement to merge in a transaction with an implied enterprise value of approximately US$430 million, equating to approximately 6.3x AerSale’s forecasted 2020 Adjusted EBITDA.
The combined company, which will be named AerSale Corporation, will be publicly traded on the Nasdaq Stock Market.
AerSale, currently owned by Leonard Green & Partners, Florida Growth Fund LLC and the Company’s two founders, is a global supplier of aftermarket aircraft, spare engines, flight equipment, maintenance, repair and overhaul (MRO) services, and used serviceable material (USM) support. The Company also provides a broad range of internally engineered proprietary repairs, products, modifications, upgrades, and other cost-saving technical solutions.
AerSale focuses on commercial aircraft and engines from their mid-life phase of operating service through asset retirement.
Under the terms of the merger agreement, which was unanimously approved by the boards of directors of both Monocle and AerSale, existing AerSale shareholders, including Leonard Green & Partners, will receive US$250 million in cash and US$150 million in newly issued common equity at closing, subject to adjustment to the mix of consideration under certain circumstances.
The cash component of the purchase price is expected to be funded by Monocle’s cash in trust and the proceeds of an asset backed debt financing facility.
Monocle has secured a commitment for this facility from Wells Fargo Bank, N.A. and PNC Bank, National Association, and may seek to raise additional capital through junior debt or other sources of debt financing. Under certain conditions, the parties have the option to reduce the cash consideration to not less than US$200 million in exchange for the issuance of up to US$50 million of convertible preferred equity to existing AerSale shareholders.
In connection with the transaction and after closing, existing AerSale shareholders will also have the right to receive US$33 million in additional value in stock consideration based on the post-closing share price performance.
Following the transaction, Leonard Green & Partners, Florida Growth Fund LLC and members of AerSale’s management team will continue to own approximately 42 per cent of the outstanding shares of the combined company, subject to certain transaction closing assumptions. The remaining outstanding shares of the combined company will be held by public stockholders, including the founders of Monocle.
On a pro forma basis, AerSale expects to generate approximately US$310 million in revenue and a 17.6 per cent Adjusted EBITDA margin for the full year 2019.
Following completion of the proposed transaction, AerSale will be led by its highly experienced management team, including Co-Founder, Chairman and Chief Executive Officer Nicolas Finazzo.
UVision USA and Science Applications International Corp. (SAIC) signed a collaboration agreement to manufacture the Hero 120 Loitering Munition system…
Survitec, a provider of critical safety and survival solutions, has secured a significant contract to equip five Type 31 Frigates…
Spire Global, Inc., a provider of space-based data, analytics, and space services, has announced a deal with South Korea’s HANCOM…
Emirates has commenced its Neste fuel agreement at Amsterdam Schiphol Airport this month, with over 2 million gallons of Sustainable…
AirAsia Malaysia announced the resumption of its Kuala Lumpur-Vientiane route commencing on 2nd July 2024 on Tuesday (Mar. 26). This…
A new A321-200PF freighter joined the Royal Jordanian (RJ) fleet on March 24, bolstering its capacity to meet the cargo…
Jordan Airmotive and National Airlines have expanded their partnership with a CF6-80C2B5F engine sale. Jordan Airmotive is an engine MRO…
The Indonesian Navy (TNI-AL) commenced the steel-cutting ceremony for its inaugural Kapal Cepat Rudal (KCR / Fast Missile Boat) of…
Supernal, Hyundai Motor Group’s Advanced Air Mobility (AAM) company, has appointed David McBride as Chief Technology Officer (CTO). McBride will…
Northrop Grumman and Diehl Defence have signed a Memorandum of Understanding (MOU) formalizing their commitment to work together to support…
Collins Aerospace unveiled its Venue smart monitor at the recent Aircraft Electronics Association Convention & Trade Show's new product introduction…
Raytheon has been awarded a US$1.2 billion contract to supply Germany with Patriot air and missile defense systems. The systems…
Airbus Defence and Space has revealed its plans to acquire INFODAS, a Cologne-based company specialising in cybersecurity and IT solutions…
Boeing has announced that its current President & CEO Dave Calhoun will step down at the end of 2024; Calhoun…
VITEC, a multinational Intelligence, Surveillance, Target Acquisition and Reconnaissance (ISTAR) technology company, is set to bring its streaming technologies at…
The German Armed Forces (Bundeswehr) announced a contract awarded to Rheinmetall for the "Schwerer Waffenträger Infanterie (Heavy Weapon Carrier for…
Korean Air is set to finalize a contract with Airbus for the acquisition of 33 A350 family aircraft. The agreement…
The Indonesian Army's 13th Cavalry Battalion has officially welcomed nine Harimau tanks into its arsenal. The induction ceremony took place…
Naval Group commenced the steel-cutting ceremony for the first third-generation French SSBN (SNLE 3G) at the group’s shipyard in Cherbourg…
Vietnam's leading budget airline, Vietjet, continues its expansion into the Australian market with the introduction of a new direct flight…
MRO company AAR has signed a multi-year agreement to supply surplus material for the CFM56-5B engine to Cebu Pacific. Under…
Embraer hosted the C-390 Millennium and A-29 Super Tucano of the Brazilian Air Force (FAB) at Embraer Executive Jets' headquarters…
Terma's SCANTER 4002 radars have been selected by Belgian Defence to enhance the nation's airspace surveillance capabilities at both military…
MBDA, manufacturer of missiles and missile systems, has joined Egypt International Airshow (EIAS) as Platinum Sponsor that will take place…
Eve Air Mobility's Urban Air Traffic Management (Urban ATM) software has been named Vector. According to the company, Vector will…
GKN Aerospace has signed a decade-long agreement to expand its support for the LEAP engines, strengthening its long-term partnership with…
Italian company Piaggio Aerospace has achieved certification as a Maintenance Training Organisation by the Italian Ministry of Defence, permitting the…
Airbus has secured a contract from NASA’s Jet Propulsion Laboratory (JPL) in Pasadena, California, to design and manufacture the GRACE-C…
Lufthansa Technik will provide Total Component Support (TCS) for the current and future Airbus A321neo and A330neo fleets of Sunclass…
AirAsia Cambodia has announced its readiness to commence operations with flights to three domestic destinations: Phnom Penh, Siem Reap, and…
Headquartered in Singapore with reporters spread across all major regions, GBP Aerospace & Defence is a leading media house that publishes three publications that serve the aerospace and defence sector - Asian Defence Technology, Asian Airlines & Aerospace and Daily News. Known industry-wide for quality journalism, GBP Aerospace & Defence is present at more international tradeshows and exhibitions than any other competing publication in the region.
For over three decades, our award-winning team of reporters has been producing top-notch content to help readers stay abreast of the latest developements in the field of commercial aviation, MRO, defence, and Space.
Copyright 2024. GBP. All Rights Reserved.
Home Defence & Security Space Commercial Aviation Maintence Repair & Overhaul Daily News Events About Us
2024 GBP all rights reserved.