AeroCentury signs agreement to acquire JetFleet Holding

AeroCentury (the Company or AeroCentury) , an independent aircraft leasing company, has signed a definitive Agreement and Plan of Merger (Merger Agreement) for the acquisition of JetFleet Holding (JHC) on October 26, 2017. JHC is the parent of JetFleet Management Corp. (JMC), which has managed the Company’s operations and aircraft portfolio since AeroCentury’s founding in 1997. The current management agreement between JMC and the Company was entered into in 2015 and has a term ending in 2025. Under the Merger Agreement, JHC shareholders are to receive US$3.5m in cash and 129,286 shares of the Company’s Common Stock, subject to various adjustments at closing, in return for all the outstanding capital stock of JHC. The closing of the acquisition is expected to occur in the first quarter of 2018, and is subject to satisfaction of certain conditions customary for merger transactions. Until the closing, AeroCentury and JHC will operate as separate businesses. Once the acquisition is consummated, JHC will become a wholly-owned subsidiary of AeroCentury, thereby consolidating the Company’s current management team at JHC with the Company’s aircraft portfolio into one enterprise.