General Electric Co. is all set to close a $30 billion deal to sell its aircraft leasing business with Irish AerCap Holdings NV in accordance to restructuring its operations.
Though the details of the merger is still under the shadows, the valuation is expected to be over $30 billion. The deal is to be announced on Monday and will combine GE Capital Aviation Services (Gecas) with AerCap. Notably 3,000 aircraft will be owned between the two companies—on order or managed.
The beginning of many firsts, the deal is carried by GE’s Chief Executive Larry Culp. The company’s financial unit had gone through a series of unfortunate events in the 2008 recession and thereafter—hence the attempts of turning around the business.
Last year, General Electric completed its $21.4 billion worth sale of Culp’s former employer- Danaher Corp.
The deal could be a potential recovery for both the companies and the airline industry with GE and AerCap’s renewed interest for engine leasing and refinance. The aviation industry was one of the worst-hit industries affected by the novel coronavirus last year.