Bohai Leasing Completes Acquisition of Avolon Holdings Ltd, Originated and Structured by Bravia, to Create World’s 4th Largest Aircraft Leasing Company
NEW YORK, January 12, 2016–Bravia Capital Partners, Inc. announced today the completion of the acquisition by Bohai Leasing Co., Ltd. (SZSE: 000415) (“Bohai”) of 100% of Avolon Holdings Limited, which was previously listed on the New York Stock Exchange as “AVOL” (“Avolon”). Bravia originated and structured the transaction with a total enterprise value of approximately US$7 billion, bringing Bohai’s investment in commercial aircraft and new orders to over 500 aircraft which, based on this fleet, makes Bohai the fourth largest aircraft leasing company in the world.
Bravia’s initial step was to be the lead equity participant with HNA Group, Bohai’s parent, in 2010 in acquiring the Allco Aviation fleet of 68 widely leased aircraft in an acquisition with a total enterprise value of approximately US$3 billion and the acquired portfolio was subsequently re-branded Hong Kong Aviation Capital (“HKAC”). HKAC was then acquired by Bohai in 2012. Since then Bohai has worked with Bravia, eventually acquiring Avolon, further enhancing its strategic position. Bohai have been building presence and scale across transportation finance sectors and Bravia has been at the center of its acquisition activity having both originated and co-invested in aircraft leasing and marine container leasing, representing US$15 billion total enterprise value of acquisitions over the last 6 years.
“This is a milestone transaction. Scale is critically important for this industry to take advantage of two critical inputs for this business. They are OEM pricing and the cost and depth of debt. It’s only the top 3 or 4 companies in this space that will have a sustainable long term advantage. Building scale was vitally important, and merging two profitable businesses further unlocked several hundred million in value,” said Bharat Bhise, CEO of Bravia.
“Bravia has been the most active developer, partner and participant in transportation asset acquisition and finance. We appreciate their cycle knowledge, strong historical perspective and an ability to manage asset risk, all of which are necessary in today’s environment in order to identify and manage good opportunities in transportation and logistics,” said Chris Jin, CEO of Bohai.
Bohai is a Chinese public company listed on the Shenzhen Stock Exchange (SLE: 000415), and is the only listed leasing company on the Chinese A-Share stock market. Bohai owns a portfolio of world class equipment and transportation asset leasing companies and is a majority controlled subsidiary of the HNA Group. See www.bohaileasing.com/en/
Bravia is a global investment firm with a primary focus on transportation, logistics, infrastructure and financial service investments worldwide. Bravia has recently completed several key transportation sector acquisitions on behalf of itself and its investment partners: Cronos Group (2015), Energy Asia Transportation (2014), TIP Trailer Services Group (2013), Africa World Airlines in Ghana (2012), Seaco (2011), MyCargo Airlines (2011), MyTECHNIC (2010), and Hong Kong Aviation Capital (2010). For more information please go to Bravia’s website: www.braviacapital.com