GECAS acquired Milestone Aviation Group (MAG) for $1.775 billion in 2015. MAG is the world's largest helicopter lessor, headquartered in Dublin. The acquisition was a strategic fit that expanded GECAS's portfolio into the adjacent aircraft leasing industry. It also aligned with GE's core sectors and allowed GECAS to benefit from MAG's low tax location in Ireland and retention of its management. Future challenges will include integrating the companies successfully while managing financial performance and risks from legal issues, oil price fluctuations, and intellectual property.

1. S
GECAS – MAG ACQUISITION
FI6021: International Corporate Finance
MSc in International Management and Global Business
Group 4: Jennifer O’Sullivan, Charul Singh, Jieliang Fang & Selma
Halilovic
November-2015

2. AGENDA
S Brief overview of case study
S The rationale behind the acquisition
S Financial strategy
S Future challenges
S Concluding remarks

3. BRIEF OVERVIEW OF CASE STUDY
S Milestone Aviation Group
S World’s largest helicopter lessor
S Headquartered in Dublin
S Founded in 2010
S Acquired by GECAS in 2015 for $1.775 billion

4. THE RATIONALE BEHIND THE ACQUISITION: WHY
MAG?
S Strategic fit and synergy
S Adjacent industries
S Strategic growth
S Portfolio expansion
S Alignment with GE’s core sectors
S Risk minimisation
S Geographical location
S Low corporation tax
S The Cape Town Convention
S Retention of MAG management

5. FINANCIAL STRATEGY
S Funding decisions
S Methods of payment
S Valuation of MAG
S Assessing the right price
S Impact on overall value of GETHE RATIONALE BEHIND
THE ACQUISITION: WHY MAG?

6. FUTURE CHALLENGES
S Facilitating successful integration
S Ensuring financial performance
S Potential risks
S Legal issues
S Intellectual property risk
S Fluctuation of oil prices

7. CONCLUDING REMARKS
In such uncertain times for GE Capital why do you
think that GE approved the acquisition of MAG by
GECAS?