Stellwagen Group has agreed to acquire ECN Capital's commercial advisory and asset management business, the buyer's parent Acasta has disclosed.
ECN Aviation arranges, co-invests and manages a portfolio of commercial aviation assets on behalf of institutional investors. It manages C$1.7 billion-worth ($1.25 billion) of aircraft assets on lease to 30 carriers globally.
"The acquisition of ECN Commercial Aviation further enhances Acasta's specialised aviation asset management business," states Acasta chief executive Anthony Melman.
"Stellwagen will capitalise on ECN's successful platform as a vertically integrated provider of aviation advisory services. ECN Commercial Aviation is highly complementary with the core advisory and aircraft management businesses of Stellwagen, which provide holistic aircraft solutions to operators and institutional investors.
"This transaction will enable us to amplify Stellwagen's reach, standing and value in the global aviation industry, and enhance and broaden our relationship with institutional investors."
The acquisition will provide Stellwagen with an established asset management platform. The existing ECN Aviation team will also join Stellwagen, says Acasta.
To pay the $22.5 million purchase price for ECN Commercial Aviation, Acasta will issue Class B shares at $10 per share with a one year lock-up, subject to a top-up of up to 10% if the share price is less than $10 after the lock-up expires.
"We are acquiring and partnering with an experienced management team and a highly successful financing platform," states Stellwagen founder and chief Douglas Brennan.
"This acquisition enables us to leverage ECN Commercial Aviation's established fund platform, management team and institutional relationships, significantly accelerating our initial goal of $5 billion of assets under management."
Canadian investment company Acasta Enterprises disclosed an agreement to buy Stellwagen Group for $270 million in November last year.
Source: Cirium Dashboard
