TOKYO: Japan’s Orix Corp has agreed to buy AerFin Ltd, a UK-based airplane parts company, in a deal worth about 100 billion yen (US$640mil) including debt, people familiar with the matter say.
Orix plans to complete the transaction by the end of the year, said the people, who asked not to be identified before an official announcement. Representatives for Orix and AerFin declined to comment.
Orix, a diversified financial company based in Tokyo, runs an aircraft leasing business with a fleet of more than 240 airplanes through its subsidiary Orix Aviation.
In 2018, Orix bought a 30% stake in aircraft lessor Avolon Holdings Ltd from China’s HNA Group Co for US$2.21bil, one of its biggest-ever deals.
AerFin buys old aircraft, engines and parts, harvesting still usable components then selling them to airlines and maintenance companies. It has over 600 customers and about US$370mil in annual revenue, according to its website. — Bloomberg
