General Electric Co. (NYSE:GE) has announced that Ireland’s AerCap Holdings NV will purchase its aircraft-leasing business in a deal valued at $30 billion U.S.
The business, known as GE Capital Aviation Services (GECAS), is one of the world’s biggest jet-leasing companies and leases passenger aircraft made by companies including Boeing Co. (NYSE:BA) and Airbus SE.
The deal includes $24 billion U.S. in cash, a 46% stake in the combined company, and $1 billion U.S. paid in AerCap notes and cash on closing.
The transaction, which simplifies GE and allows the company to now focus on its core industrial segments of power, renewable energy, aviation and healthcare, is the latest in a series of divestitures that GE Chief Executive Officer Larry Culp has undertaken since taking the helm of the conglomerate in 2018.
GE said it plans to reduce debt by about $30 billion U.S. after closing the deal with AerCap using the transaction proceeds and existing cash. The deal is expected to close in the fourth quarter of this year, and the combined company will have more than 2,000 jets.
Citibank and Goldman Sachs have provided AerCap with $24 billion U.S. of committed financing to complete the transaction with GE.