Investment firm takes stake in Denis O’Brien’s Aergo

Global investment firm CarVal Investors has acquired a majority holding in Dublin-based aircraft leasing company Aergo Capital for an undisclosed sum.

Aergo, which also has offices in Johannesburg and Santiago de Chile, was established in 1999 by businessmen Denis O'Brien and Fred Browne. Profitable since inception, the company has traded in excess of 150 aircraft with a gross value of over $1 billion.

Mr Browne is set to remain with the company and is set to reinvest 10 per cent of the equity.

“This partnership marks the beginning of the next chapter in Aergo’s success. We are very excited about the opportunity it brings to grow and expand the business model into newer, more-modern aircraft,” he said. “We look forward to working with CarVal Investors to build a strategic partnership that will build on the firm’s strength and track record and Aergo’s proven expertise in managing mid-life aircraft.”

The last available accounts for Aergo show pre-tax profits rose to $2.28 million (€1.7 million) in 2013.

“The acquisition of Aergo offers a compelling and strategic solution to maximise and monetise value in existing and future aircraft investments from acquisition to disposition,” said Justin Bradburn, managing director for CarVal Investors. “Aergo allows us to strategically approach what we believe is going to be a dynamic market.”