AeroCentury Corp. (NYSE American: ACY) (the “Company”), an independent aircraft leasing company, today announced it has completed the acquisition of JetFleet Holding Corp. (“JHC”). JHC is the parent of JetFleet Management Corp., which has managed the Company’s operations and aircraft portfolio since the Company’s founding in 1997. ACY paid approximately $2.8 million in cash and 129,286 shares of ACY common stock to JHC shareholders.
“We believe this acquisition will be a positive development for AeroCentury and appreciate the strong support we have received by both ACY and JHC shareholders. To our customers, the merger represents business as usual, since the same management team that has run AeroCentury remains in place and fully intact,” said Michael Magnusson, CEO of AeroCentury.
Mr. Magnusson continued “We anticipate the merger will eventually be accretive to earnings, assuming operations remain consistent under the combined structure, and after disregarding the one-time merger expenses that will significantly impact the financial results in the short term immediately following the merger,” Magnusson noted. The accounting for the merger is expected to include a one-time settlement loss, based on the cancellation of the contract with JetFleet Management Corp.