EQT to buy majority stake in NAC

EQT has agreed to acquire Nordic Aviation Capital, a Denmark-based turboprop aircraft leasing company. KIRKBI Invest A/S is also co-investing. Although the exact sum of the deal was not disclosed, it will put NAC at a 3.3 billion valuation at its completion. As part of the transaction, Martin Møller, founder of NAC, will continue as both chairman and a “significant” shareholder. Rothschild, Clifford Chance, PwC and E&Y advised NAC while Goldman Sachs, Accura, Freshfields, Bain & Co, IBA and PwC advised EQT.

PRESS RELEASE

EQT VI has agreed to acquire a majority stake of Nordic Aviation Capital A/S (“NAC” or the “Company”), the world’s largest lessor of turboprop aircraft for the global airline industry, and enter into a partnership with Martin Møller, NAC’s founder and Chairman. Martin Møller will continue as Chairman of the Company, and will remain a significant shareholder and will contribute around 50% of the capital.

NAC was founded in 1990 by Martin Møller and is today a clear market leader in turboprop aircraft leasing, a distinct subsector of the commercial aircraft leasing market, with strong regional market positions and a differentiated business model. NAC is the world’s largest owner and lessor of both ATR and Bombardier turboprop aircraft and the current fleet consists of almost 250 aircraft with an average value weighted age of only 5.4 years. The customer base is global with more than 40 airlines in 30 different countries.

The partnership is evidence of NAC’s strong market position and impressive historical track record of profitable growth. With additional equity capital, NAC will continue expanding its fleet to meet the need for flexible and innovative financing solutions for regional aircraft across the world.

“NAC is an attractive company with a strong position in a growing market. The Company has had an impressive development so far, thanks to a unique business model and a strong management team and corporate culture. EQT VI will supplement the board with financial and aviation experience from EQT’s network of Industrial Advisors. We believe NAC fits well with EQT’s industrial approach of supporting companies to reach their full potential and are excited to partner with Martin Møller going forward,” says Morten Hummelmose, Partner at EQT Partners, Investment Advisor to EQT VI.

“For us, both the timing and EQT as a new partner is perfect. We see great opportunities for NAC and can benefit from EQT’s extensive experience of developing successful companies. Teaming up with EQT supports NAC’s growth strategy and ambition of expanding our position as the world’s leading regional aircraft lessor,” says Martin Møller, founder and Chairman of NAC.

KIRKBI Invest A/S, an investor in EQT VI, will co-invest in NAC alongside EQT VI.

Closing of the transaction is subject to customary regulatory approvals from certain competition authorities. On a cash and debt free basis the transaction values 100% of NAC at USD 3.3 billion at closing.

NAC has been advised by Rothschild, Clifford Chance, PwC and E&Y. EQT VI has been advised by Goldman Sachs, Accura, Freshfields, Bain & Co, IBA and PwC.

About NAC
Founded in Skive, Denmark in 1990 by Danish aviation entrepreneur Martin Møller, NAC is the world’s largest independently owned aircraft leasing company.

NAC focuses mainly on the leasing of regional aircraft and currently have clients across the globe in Europe, North America, Asia, South America, Middle East, Russia, and Africa. Today, the Company has offices in the Denmark, Ireland, North America and Singapore. Additional representatives are located in London, Toulouse, and Berne.

In the financial year ending 30 June 2015, NAC expects to generate a net profit in excess of USD 110 million, have an aircraft asset base of around USD 2.9 billion, net debt of USD 2.3 billion and shareholders’ equity of around USD 530 million.

For further information please visit www.nac.dk

About EQT
EQT is a leading private equity group in Europe, with portfolio companies across Europe, Asia and the US with total sales of more than EUR 17 billion and approximately 140,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

For further information please visit www.eqt.se