DAE Strengthens Portfolio with NAC Acquisition
Deal News | Jan 07, 2025 | Zawya
Dubai Aerospace Enterprise (DAE) Ltd has announced its agreement to acquire Nordic Aviation Capital (NAC), marking a significant consolidation in the global aircraft leasing sector. Established over 30 years ago, NAC's current fleet includes 252 owned and committed assets leased to roughly 60 airline customers across 40 nations. Post-acquisition, DAE's portfolio will expand to approximately 750 aircraft valued at USD 22 billion, serving around 170 airline customers in 70 countries. The acquisition aims to leverage NAC's market reach and capabilities to enhance DAE's service offering. The deal, to be funded by internal resources and committed debt, maintains DAE's financial metrics within favorable credit rating boundaries. Completion is slated for the first half of 2025, pending regulatory and shareholder approvals.
Sectors
- Aviation Leasing
- Aerospace
- Finance
Geography
- United Arab Emirates – DAE, the acquiring company, is based in Dubai, making the UAE a primary geography of the article.
- Denmark – Nordic Aviation Capital is based in Denmark, highlighting the geographic relevance.
- Global – The transaction involves approximately 70 countries where the fleets are leased, indicating its global impact.
Industry
- Aviation Leasing – The article discusses the acquisition of an aviation leasing company, highlighting activities within the aviation leasing sector.
- Aerospace – DAE is expanding its aerospace capabilities through the acquisition of a significant player in aircraft leasing.
- Finance – The acquisition involves complex financial arrangements, including leveraging internal resources and debt financing.
Financials
- USD 22 billion – The total value of the expanded DAE fleet post-acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Dubai Aerospace Enterprise (DAE) Ltd | Bidding Company | Company | A global leader in the aircraft leasing industry looking to expand its market presence. |
| Nordic Aviation Capital | Target company | Company | A prominent aircraft leasing company with a fleet leased to many global airline customers. |
| Firoz Tarapore | Chief Executive Officer | People | CEO of DAE providing insights into the strategic benefits of the acquisition. |