Monocle Acquisition, a public investment vehicle, and AerSale®, a leading integrated, global provider of aviation aftermarket products and services, have entered into a definitive agreement to merge in a transaction with an implied enterprise value of approximately US$430 million, equating to approximately 6.3x AerSale’s forecasted 2020 Adjusted EBITDA. The combined company, which will be named AerSale Corporation, will be publicly traded on the Nasdaq Stock Market.
AerSale, currently owned by Leonard Green & Partners, Florida Growth Fund LLC and the Company’s two founders, is a leading global supplier of aftermarket aircraft, spare engines, flight equipment, maintenance, repair and overhaul (MRO) services, and used serviceable material (USM) support. The Company also provides a broad range of internally engineered proprietary repairs, products, modifications, upgrades, and other cost-saving technical solutions.
Under the terms of the merger agreement, which was unanimously approved by the boards of directors of both Monocle and AerSale, existing AerSale shareholders, including Leonard Green & Partners, will receive US$250 million in cash and US$150 million in newly issued common equity at closing, subject to adjustment to the mix of consideration under certain circumstances.