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GA Telesis Acquires Mountain Capital Partners
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Written by Laura S. West   
Wednesday, 21 December 2011
GA Telesis (GAT), the commercial aerospace company in Florida, and Mountain Capital Partners (MCP) have signed an agreement to merge on September 1. MCP, based in Denver, Colorado, is a private investment firm that specialises in aircraft and engine sales and leases.

"We're seeing a lot of activity in the market place and we've been on an acquisition frenzy trying to acquire assets in what is a "highly competitive market," says Abdol Moabery, CEO, GAT. "We were having difficulty putting together a team to keep up with our volume, so the best way to do it was to acquire a team."

As part of the deal, GAT will acquire the entire MCP team bringing GAT's team to 10 people. The team will be led by Mark Fabian, president, MCP. Fabian will become GAT's new senior vice president of asset transactions.

The senior team, which will remain in Colorado, will also include Robert Loesch and David Ellis. Loesch, who now focuses on capital markets at MCP, will be senior vice president of transaction finance. Ellis, now MCP's director of finance and marketing, will be vice president of acquisitions.

The acquisition will not significantly increase GAT's portfolio as most of MCP's portfolio is managed. GAT's motivation for the acquisition is to expand its acquisition and leasing team. GAT will either acquire or wind down MCP's assets and transactions over time.

"The acquisition allows us to process our acquisition opportunities more efficiently than we do now," Moabery says.

In 2010 and early 2011, GAT made several key appointments. It named Alvin Khoo senior vice president and chief investment officer (CIO) in February, and appointed Irvin Lucas vice president of turbine engine programmes in January. Previously it named Nigel Christie managing director of GAT's UK operations.

GA Telesis specialises in mid-life commercial aircraft and jet leasing, as well as component maintenance. It also manages a replacement aerospace parts business.

The company has a portfolio of about 35 aircraft and 40 engines worth more than $500 million. The aircraft have an average age of about 14 years, however the engines are younger on average.

Trading pick up

GAT expects to close more than $150 million in aircraft and jet engine acquisitions before the end of the year. It plans to sell five aircraft--four Airbus A320s and one Boeing 757--in September. The aircraft are in their mid-teens. The company also plans to purchase up to three aircraft including one narrowbody A320 and two widebodies.

Moabery says aircraft trades have picked up significantly since the lull in 2008 and 2009, when there was virtually no trading.

"It picked up a bit in 2010, probably about 30% of what it was in 2007," Moabery says. "However, 2011 is going back to trading levels of 2007. I'm definitely seeing a trend in the right direction."

Lease rates are also increasing slightly from the trough levels of 2009 and 2010. Airlines, especially new start ups, are requiring more aircraft.

"We're seeing more lease activity so there is more competition to get the aircraft. There's demand so the pricing is also moving upward," Moabery says.
Last Updated ( Wednesday, 21 December 2011 )