Acquisitions · Aircraft leasing
Tokyo Century buys out aircraft lessor Aviation Capital Group from Pacific Life
- Buyer
- Tokyo Century (via TC Skyward Aviation) (Tokyo)
- Target
- Aviation Capital Group (remaining stake, to 100%), Newport Beach, California
- Value
- ¥321.3B (about $3B per media)
- Status
- Agreed on September 9, 2019; completed in December 2019.
- Date
- 2019-09-09
Tokyo Century agreed to buy the 75.5% of Aviation Capital Group that it did not already own from US insurer Pacific Life, making the Newport Beach, California aircraft lessor a wholly owned subsidiary. The deal is listed at ¥321.3 billion, about $3 billion according to media reports.
Why it matters
Full ownership made aircraft leasing a core part of Tokyo Century's international business. It was one of the largest Japanese acquisitions in the US in 2019.
From partner to owner
Before the deal, Tokyo Century held the remaining 24.5% of Aviation Capital Group alongside Pacific Life, which held 75.5%. By buying Pacific Life's shares through its subsidiary TC Skyward Aviation, Tokyo Century took full control of the lessor, investing about ¥320 billion. ACG leases commercial aircraft to airlines around the world.
The seller's advisers
Pacific Life was advised by Goldman Sachs and the law firm Debevoise & Plimpton. The sale was completed in December 2019.
Sources
Kakehashi M&A News home
