Excerpt
from an interview with Steve Hannahs,
Managing Director of ACG
Operating lessor Aviation Capital Group
has joined forces with Fortis Bank
to acquire a stake in remarketing company
Magellan Group.
CAO understands that Fortis Bank is
using its investment vehicle called
FB Transportation in the equity type
transaction.
“This is a joint venture investment
with one of ACG’s long time investment
partners, Fortis Bank,” comments
Aviation Capital Group’s managing
director Steve Hannahs in an interview
with CAO.
“I cannot comment on the exact amount
but it is an equity type investment which
means that it is not strictly equity. Given
ACG’s size any investment whether
it is for aircraft or stakes in other companies
is from cash flow,” he adds.
According to Hannahs, the reason for
the investment is that Aviation Capital
Group is primarily a new aircraft purchaser. “We
have 233 aircraft in our portfolio with
over 150 on order. However, we see opportunities
in engine leasing, partout and other distressed
assets. I believe that between Fortis and
ACG we can “turbo charge” Magellan
and assist them in building their business,” he
comments.
“We can accomplish this effort through
funding vehicles and inter company coordination.
The current management at Magellan will
remain on board and will guide this company
into the future. We will be actively involved
with assistance to them,” he concludes. |
