NOVEMBER 10TH, 2016
Stellwagen Announces Its Acquisition By Acasta Enterprises Inc. For US$270 Million
Thursday, 10 November 2016, Dublin, Ireland – Stellwagen Group (“Stellwagen”) and Acasta Enterprises Inc., a Toronto, Canada based public company (“Acasta”, and together with Stellwagen, the “Parties”), today announced that the Parties have entered into definitive agreements by which Acasta would acquire Stellwagen for approximately US$270 million plus future consideration contingent on the operating performance of Stellwagen over the next three to five years, and will commit to investing US$100 million into Stellwagen Capital’s Senior Loan Company or another strategic investment. These agreements are subject to certain conditions, including regulatory approval and approval by Acasta’s shareholders.
Stellwagen’s world-class leadership team is executing on a highly profitable entrepreneurial business model. The Group is uniquely positioned to leverage innovative financial engineering and technology to modernize aircraft lending and leasing, largely unchanged for decades. Stellwagen’s aviation finance and management businesses have experienced significant growth over the past three years and will draw upon the relationships and the expertise of Acasta to drive the growth of its existing businesses and the new asset management and technology businesses.
“Aircraft asset management and financing is an extremely attractive industry, with strong returns and much less volatility than the airline sector as a whole. The newly launched technology business also gives us a high level of confidence that the Stellwagen team can deliver, and is validated by the traction they have already received in the market,” said Michael Neal, an Acasta Founder and Advisor, and current member of JP Morgan’s Board of Directors. As the former CEO of GE Capital, Mr. Neal oversaw GE Capital Aviation Services’ $46 billion commercial aircraft and financing business unit.
Speaking today, Douglas Brennan, CEO of the Stellwagen Group, said: “Acasta’s leadership includes some of the most highly respected individuals in the global aviation and finance industries. Under the leadership of Anthony Melman and the Board of Directors of Acasta, our partnership will accelerate our business model by delivering permanent capital into our Group, fulfilling our goal to provide stable and flexible capital to the aircraft industry – on the one hand – and better risk-adjusted returns for our shareholders and aircraft investors – on the other.”
Stellwagen Capital’s CEO, Howard Millar commented: “I am pleased to have such a strong capital partner. We plan to have $5 billion in assets under management within three years, and believe that Acasta is the right partner to enable us to deliver these targets.” Stellwagen is launching a series of aircraft related investment vehicles, the first of which is a senior secured aircraft loan company designed to meet the increasing demand caused by the retreat of the aviation banks.”.