Deutsche Bank has agreed to purchase US aircraft leasing company Boullioun Aviation Services from Sumitomo Trust & Banking in a deal valued at around $120 million. The acquisition should be completed by year-end, following regulatory approval and other agreements.
The Bellevue, Washington-based company was set up in 1986 by aviation industry veteran E H "Tex" Boullioun, and was purchased by Sumitomo in 1994. The sale by the Japanese bank comes as many of the country's banks are suffering major financial problems, and are being forced to write off billions of dollars in loans, resulting in the need to raise cash.
Boullioun and its joint venture company with Singapore Airlines, Singapore Aircraft Leasing Enterprise (SALE), in which it has a 35.5% stake, have a portfolio of 46 aircraft valued at $1.6 billion, including A320s and Boeing 737s, a 747 and 757s, 767s and 777s. The two companies also have around 100 aircraft on order (A320s and Boeing 777s), including options, valued at $6 billion.
The lessor will be integrated into Deutsche Bank's Structured Finance division, operating alongside the International Leasing and Asset Finance Group.
The German bank says the move will extend its aircraft financing capabilities, consolidating its position as a major provider of aircraft finance.
Source: Flight International