Pacific Life to sell Aviation Capital Group to Tokyo Century

Pacific Life Insurance has agreed to divest its majority stake in commercial aircraft leasing subsidiary – Aviation Capital Group (ACG) to Tokyo Century Corporation for nearly $3 billion.

The transaction will see the Japanese financial services company take its ownership in the commercial aircraft leasing company to 100%. Tokyo Century first acquired 20% stake in Aviation Capital Group in 2017 and subsequently increased it to 24.5% by contributing more equity capital to ACG to help accelerate the latter’s business growth.

The US-based Aviation Capital Group is a full-service aircraft asset manager with nearly 500 owned, managed and committed aircraft as of 30 June 2019, which are leased to nearly 90 airlines in close to 45 countries. The commercial aircraft leasing company was established in 1989 and is majority-owned by Pacific Life Insurance.

Pacific Life to divest Aviation Capital Group to Tokyo Century. Photo courtesy of Coolcaesar at English Wikipedia.

Jim Morris – chairman, president and CEO of Pacific Life said: “The growth within the aircraft leasing industry continues to accelerate and ACG has consistently provided value to the world’s airlines for the last 30 years.

“Leasing is a core business for Tokyo Century. Such a focus will only enhance ACG’s position as one of the preeminent aircraft lessors in the world. At the same time, this transaction allows Pacific Life to increase investments in our core businesses.”

Tokyo Century is a publicly-held company listed on the Tokyo Stock Exchange which has a global network in 37 countries and regions. Its main businesses include equipment leasing, mobility and fleet management, specialty financing, and international business.

Khanh T. Tran – president and CEO of Aviation Capital Group said: “Tokyo Century has been a valuable partner since 2017 and this acquisition of the remainder of ACG demonstrates a commitment to the growth and success of the ACG platform and the aircraft leasing industry.

“The ACG team is enthusiastic and looking forward to being part of the Tokyo Century family as we expand and continue to provide best-in-class global aircraft leasing, financing, and trading services.”