A management team backed by Anglo Irish Bank has bought out the Dublin-based aviation services group Pembroke from the jet-engine manufacturer Rolls Royce and GATX Corporation, the US lease financier.
Pembroke Group emerged in early 1990s from the embers of Guinness Peat Aviation (GPA), the failed aircraft lessor.
The management buyout was priced at a slight discount to its net asset value of $35 million (€27.35 million), industry sources said.
Pembroke chief executive Garry Burke led the buyout, along with chief financial officer Peter Moylan and chief commercial officer Kieran Corr.
As part of the deal, former Shannon Aerospace chairman and former GPA vice-chairman James M King has joined Pembroke's board as chairman.
The team's acquiring vehicle was a Cyrpus-registered investment company called Medulla Asset Managers.
The transaction follows a strategic decision some time ago by Pembroke's 50 per cent owner Rolls Royce to exit the aircraft-leasing business because it no longer considered it a core operation.
GATX decided to sell out at the end of last year.
In its interim results last week, Rolls Royce said it took a charge of £10 million (€14.68 million) "to reflect the recoverable value of Pembroke's aircraft assets".
Pembroke leases aircraft to 39 operators in 25 countries. It owns 20 aircraft - 12 are Boeing 717s and the remainder are Boeing 737s.
In addition, it manages a portfolio of about 100 planes for banks that foreclosed on airlines in the downturn after the 9/11 attacks on the US.
This includes planes formerly used by defunct airlines such as SwissAir and Sabena and others formerly used by Northwest Airlines, Delta Airlines and American Airlines.
"The number of airplanes under management will decline somewhat over the next year or so as asset owners avail of the opportunity to sell some their aircraft," said Mr Burke.
At the same time, Pembroke has plans to significantly expand its own portfolio of planes. Mr Burke said it might well buy more than 10 aircraft. "We'll be looking do that in alliances with other parties," he said.
"The acquisition of the group by the management team will allow us to develop Pembroke on an independent track and to develop market opportunities directly as they arise."
