Brookfield Asset Management has partnered with TSX-listed Chorus Aviation on the acquisition of Falko Regional Aircraft.
Chorus Aviation said it has agreed to buy regional aircraft lessor and management firm Falko in an $855m (€739m) cash and debt deal.
The acquisition includes Falko’s asset management platform and its equity interests in certain entities and aircraft owned by Fortress Investment Group funds.
Upon closing, Chorus Aviation expects to have 32 airline customers in 23 countries. The combined company will have a total of 353 owned, operated, and managed regional aircraft.
Subject to completing the deal, Brookfield, via its special investments programme, will invest $374m for a stake in Chorus Aviation. Brookfield will also nominate its team members David Levenson and Frank Yu to Chorus Aviation’s board of directors.
Angelo Rufino, managing partner and head of Americas for Brookfield’s special investments, said: “We are pleased to partner with Chorus on the acquisition of Falko, which enables the combined company to execute on its asset-light strategy and benefit from the recovery in the aviation sector.
Levenson, managing partner and global head of Brookfield’s special investments, said: “This investment is another example of how Brookfield partners with companies to originate flexible capital solutions to help them achieve their strategic goals.”
Joe Randell, Chorus Aviation’s president and CEO, said: “We are extremely pleased to have Brookfield, a well-respected company with global reach, as our strategic cornerstone investor, bringing extensive experience in asset management, fundraising and capital markets.
“The equity investment is an important endorsement of our strategy and simultaneously reduces leverage Brookfield’s significant financial strength and transaction expertise provides Chorus with increased stability and support to execute on our strategy to the benefit of all stakeholders.”
Jeremy Barnes, Falko Regional Aircraft CEO, said: “In an increasing competitive environment, together we’re better able to effectively address the needs of our customers and provide them with a larger scale of fleet solutions.
“Chorus’ technical skills and capabilities will help maximise asset returns for the benefit of shareholders and fund investors.”
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