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GE Announces Completion of Combination of GECAS with AerCap, Receives Greater than $30 Billion Total Consideration

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GE announced the completion of its strategic combination of GE Capital Aviation Services (GECAS) with AerCap Holdings. This deal positions GE as a simpler, stronger industrial company, reducing its debt by approximately $75 billion since 2018. GE received more than $30 billion upon closing, including $23 billion in net cash and a 46% stake in AerCap valued at about $6.6 billion. CEO H. Lawrence Culp emphasized this as a debt management strategy with potential for equity growth in the recovering aviation sector.

Positive
  • Debt reduction of approximately $75 billion since 2018 enhances financial stability.
  • Total consideration of over $30 billion strengthens GE’s balance sheet.
  • Acquisition of a 46% stake in AerCap valued at approximately $6.6 billion provides potential for long-term equity gains.
Negative
  • None.

Deal marks GE’s transformation to a more focused, simpler, and stronger industrial company

BOSTON--(BUSINESS WIRE)-- GE (NYSE:GE) announced today the completion of the combination of its GE Capital Aviation Services business (“GECAS”) with AerCap Holdings N.V. (“AerCap”).

GE Chairman and CEO H. Lawrence Culp, Jr., said, “Completing this strategic transaction is a significant milestone in GE’s transformation to a more focused, simpler, stronger high-tech industrial company. This is a debt story today. The cash proceeds put us in a position to have reduced our debt by approximately $75 billion since the end of 2018, and we gain a meaningful stake in AerCap that we will monetize as the aviation industry recovers. And it is an equity story longer term, substantially simplifying GE to its industrial core. I’d like to thank AerCap and the exceptional GECAS team for their support in creating the combined company that will better serve customers around the world.”

Under the terms of the transaction agreement, GE received total consideration of greater than $30 billion upon closing, including approximately $23 billion in net cash proceeds; 111.5 million ordinary shares equivalent to approximately 46 percent ownership of the combined company, with a market value of approximately $6.6 billion based on the closing share price of $59.04 on October 29, 2021; and $1 billion paid in AerCap senior notes.

Caution Concerning Forward-Looking Statements

This document contains forward-looking statements – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see https://www.ge.com/investor-relations/important-forward-looking-statement-information, as well as our annual report on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update our forward-looking statements.

About GE

GE (NYSE:GE) rises to the challenge of building a world that works. For more than 125 years, GE has invented the future of industry, and today the company’s dedicated team, leading technology, and global reach and capabilities help the world work more efficiently, reliably, and safely. GE’s people are diverse and dedicated, operating with the highest level of integrity and focus to fulfill GE’s mission and deliver for its customers. www.ge.com

GE’s Investor Relations website at www.ge.com/investor and our corporate blog at www.ge.com/reports and @GE_Reports on Twitter, as well as GE’s Facebook page and Twitter accounts, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted.

GE Investor Contact

Steve Winoker, 617.443.3400

swinoker@ge.com

GE Media Contact

Mary Kate Mullaney, 202.304.6514

marykate.nevin@ge.com

Source: GE

FAQ

What was the significance of GE's merger with AerCap?

The merger marks GE's transformation into a more focused industrial company, reducing debt and providing equity growth opportunities.

How much debt has GE reduced since 2018?

GE has reduced its debt by approximately $75 billion since the end of 2018.

What financial benefits did GE gain from the AerCap merger?

GE received over $30 billion in total upon closing, including approximately $23 billion in cash and a significant stake in AerCap.

What is the value of GE's stake in AerCap?

GE acquired a 46% stake in AerCap, valued at around $6.6 billion based on a closing share price on October 29, 2021.

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