Terra Firma's Awas sells $4bn aircraft portfolio

The sale is expected to be completed within 12 months. It will allow Terra Firma to return capital to its investors, chairman Guy Hands said in a statement.

Awas retains a fleet of 200 aircraft, which it plans on continuing to grow through sale-leaseback transactions with airlines and secondary market aircraft purchases.

Terra Firma acquired Dublin-based Awas for $2.5bn, via its TFCP III fund, from Morgan Stanley in 2006. The GP holds a 75% stake in the business, with the remaining 25% stake owned by CPPIB. Awas was reported to have been put on the block last year, with Hong-Kong tycoon Li Ka-shing also linked to a potential aircraft porftolio acquisition.

Since Terra Firma's acquisition, the book value of Awas's fleet has increased from $2.3bn to $10.7bn. EBITDA has risen from $256m to $1.1bn.

Company
Founded in 1985, Awas is a commercial aircraft leasing company that engages in providing aircraft carriers on lease. It is based in Dublin.

People
Guy Hands worked on the deal for Terra Firma. CPPIB was represented by Mark Jenkins.

Advisers
Company – Goldman Sachs (M&A); Deutsche Bank (M&A); Milbank (Legal).

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• Topics
• UK / Ireland
• Exits
• Terra Firma
• Partial sale