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Pacific Life Agrees to Sell Aviation Capital Group to Tokyo Century

September 09, 2019, 07:25 AM
Filed Under: Mergers & Acquisitions

Pacific Life Insurance Company announced it has signed an agreement to sell all of its majority ownership in Aviation Capital Group (ACG), its commercial aircraft leasing subsidiary, to Tokyo Century Corporation.

In 2017, Tokyo Century acquired from Pacific Life a 20 percent membership interest in ACG. Since that time, its ownership in ACG has increased to 24.5 percent by contributing additional equity capital to ACG to help accelerate ACG’s business expansion. This transaction will result in Tokyo Century owning 100 percent of ACG.

“The growth within the aircraft leasing industry continues to accelerate and ACG has consistently provided value to the world’s airlines for the last 30 years,” said Jim Morris, Chairman, President and CEO of Pacific Life. “Leasing is a core business for Tokyo Century. Such a focus will only enhance ACG’s position as one of the preeminent aircraft lessors in the world. At the same time, this transaction allows Pacific Life to increase investments in our core businesses.”

Aviation Capital Group is a full-service aircraft asset manager with approximately 500 owned, managed and committed aircraft as of June 30, 2019, which are leased to approximately 90 airlines in approximately 45 countries. ACG was founded in 1989.

Tokyo Century is publicly held and listed on the Tokyo Stock Exchange. Its core lines of business include equipment leasing, mobility & fleet management, specialty financing and international business with a global network in 37 countries and regions.

“Tokyo Century has been a valuable partner since 2017 and this acquisition of the remainder of ACG demonstrates a commitment to the growth and success of the ACG platform and the aircraft leasing industry,” said Khanh T. Tran, ACG’s President and CEO. “The ACG team is enthusiastic and looking forward to being part of the Tokyo Century family as we expand and continue to provide best-in-class global aircraft leasing, financing, and trading services.”

Goldman Sachs served as financial advisor to Pacific Life for this transaction, together with Debevoise & Plimpton LLC as the legal advisor. The transaction is expected to close in the fourth quarter of 2019.

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