AerSale, a Coral Gables, Fla.-based provider of aftermarket aircraft, engines and components, has acquired a fleet of 44 Douglas DC8-71F/-73F series freighter aircraft. No financial terms were disclosed. AerSale recently raised $250 million from Leonard Green & Partners.
AerSale announced today the acquisition of a fleet of 44 Douglas DC8-71F/-73F series freighter aircraft powered by CFM56 engines. Included in the purchase is the company’s entire inventory of CFM56-2C1 engines, DC8-70 series spare parts & tooling, and a Level D (full motion) DC8-70 series flight simulator
“One of the cornerstones of our business model is to facilitate airlines with their fleet transitions,” stated Nicolas Finazzo, AerSale’s Chief Executive Officer. “Dealing with a single counterparty that can efficiently realize the value of such a diverse package of difficult to finance aviation assets was a major factor in AerSale winning the contract. This transaction is only the first of several large scale multi-fleet acquisitions included in our 2010 forecast.”
The Douglas DC8-70 fleet was manufactured in the late 1960s and early 1970s, and was re-engined with the CFM56-2 powerplant in the early 1980s. This engine series also powers the Boeing KC135 tanker and E-3 AWACS fleets flown by the US and numerous foreign militaries. There are approximately 2,300 CFM56-2 engines in operation worldwide. The CFM56-2 is the predecessor to the CFM56-3 and other CFM56 family engines which have broad application across the world’s fleet of passenger and cargo aircraft.
“With this package we can effectively service the remaining DC8-70 fleet despite its limited future; however strategically, the real value comes from the parts value of the engines,” added Robert B. Nichols, AerSale’s Chief Operating Officer. “With over 180 CFM56 engines included, AerSale is already positioned to become the leading provider of aftermarket CFM56 material. This is welcome news to our MRO customers who will depend upon a reliable source of aftermarket inexpensive high quality OEM parts, as an alternative to expensive new parts. Their customers in turn benefit by lower shop visit costs, which ultimately extends the economic lives of maturing CFM56 powered fleets.”
About AerSale. AerSale is a global provider of aftermarket aircraft, engines, and their component parts to airlines, leasing companies, and OEM/MRO service providers. AerSale’s parent company is AerSale Holdings, Inc., which recently completed a $250 Million equity raise with an affiliate of Leonard Green & Partners, LP.
About Leonard Green & Partners, L.P. Leonard Green & Partners, L.P. is one of the nation’s leading private equity firms with over $9 billion in equity commitments under management. Leonard Green & Partners, L.P. was founded in 1989 and has invested in 46 companies with an aggregate value of $35 billion. For more information, please visit www.leonardgreen.com.