Dublin, Ireland. March 29th, 2018 – Stellwagen Holdings LLC (the “Purchaser”) announced today that it has completed the purchase of Stellwagen Group Limited and affiliated entities from Acasta Enterprises Inc. (TSX: AEF) (“Acasta”). The Purchaser is owned by the management team of Stellwagen Group and certain Acasta shareholders.
Reacquisition of Stellwagen
Stellwagen management sold Stellwagen Group to Acasta in January 2017 on the basis of capital commitments made by Acasta to fund and expand the Stellwagen platform. Ultimately, Acasta was unable to provide the additional capital required for Stellwagen to execute its business plan as intended.
Following requests made to the board of directors of Acasta from the original owners of Stellwagen Group and the largest single shareholder of Acasta, the board, together with a majority of the remaining shareholders, agreed to sell Stellwagen Group back to the original management team. The reacquisition was funded by equity contributions from the Stellwagen Group management team and certain Acasta shareholders, as well as funding commitments from new investment partners.
“This is an optimum outcome for us,” said Douglas Brennan, CEO of Stellwagen Group. “We have an aircraft investment business that provides investors with an unparalleled platform for maximizing returns on capital. With the support of strong institutional capital partners, we have succeeded in positioning our business for further success as one of the leading global fixed income management platforms. We believe that the aircraft asset management industry requires innovative and transparent investment strategies; by persistently pursuing unique opportunities, partnering with talented investors, and serving as an active partner through the entire life-cycle of aircraft investments, Stellwagen will continue to deliver valuable asset-backed investment products to the market.”
Stellwagen Group is a specialized asset manager and a global conduit for investors looking to invest in aviation assets.
Stellwagen Group operates four core business segments:
Stellwagen Capital structures, arranges, advises and co-invests in bespoke commercial aviation investment fund vehicles. It currently manages $1.1 billion of commercial aviation assets on behalf of its institutional investor partners, including 39 commercial passenger aircraft on lease to 29 global airlines through its ECAF aviation investment fund.
The strategic advantages of Stellwagen Capital’s fund-raising capabilities create a vertically-integrated provider of aviation advisory services, highly complementary with the core advisory and aircraft management businesses of Seraph, which provide holistic aircraft solutions to operators and institutional investors.
Seraph Aviation Management
Seraph Aviation Management is an independent aviation asset manager, providing full asset management and corporate services to its clients from its headquarters in Dublin, Ireland. It currently manages $3 billion worth of commercial aviation assets, including 52 aircraft for 11 clients worldwide. Seraph is uniquely integrated with Stellwagen Technology, allowing it to leverage innovative, best-in-class risk and asset management software solutions to extract maximum value for customers from the assets under its control.
Stellwagen Technology develops proprietary technology solutions aimed at optimizing forecasting and management of aircraft maintenance overhaul events and aircraft residual values. It also provides enhanced operational, reporting and risk-management technology to each of the Stellwagen Group business segments.
Stellwagen Group has partnered with Airbus to expand the operator base for the highly successful C295 transport aircraft. Stellwagen Group placed a firm order in June 2017 for 12 C295 aircraft, with an option to purchase a further 12 aircraft. The first aircraft will be delivered in 2018.
Stellwagen Group has agreed to lease the first four aircraft deliveries to DAC Aviation under long term leases. DAC Aviation is a Canadian operator performing humanitarian missions in Africa.
The C295 aircraft is a mid-size, multi-role transport aircraft with capabilities including cargo transport, medical evacuation, search and rescue, maritime patrol and humanitarian operations. The aircraft is highly efficient with low operating costs with the ability to operate in harsh environments and remote areas.