Spotlight on Business Headlines
GE TO MERGE AIRCRAFT LEASING UNIT WITH RIVAL AERCAP Thor ramped up production last year to meet the surge in consumer RV interest. As of Jan. 31, Thor’s consolidated RV backlog checked in at $10.81B USD, up almost 280 percent compared with the same point in 2020 and a sign of per- sistent demand. G E announced that it will sell its jet-leasing business to rival AerCap in a deal valued at $30B, a move that would create a massive lessor as the aviation industry struggles through the Covid-19 pandemic. The deal would give GE a 46 percent stake in the combined company and generate about $24B in cash. THOR INDUSTRIES EXPECTS HOT RV MARKET TO CONTINUE POST PANDEMIC E lkhart, Indiana-based, Thor Industries CEO Bob Martin says that he is expecting to see strong demand for recreational vehicles even after the pandemic has passed, buoyed in part by a growing appeal to younger travelers. The maker of Airstream reported net sales of $2.73B USD, a 36 percent year-over-year jump, compared with analysts’ forecasts of $2.53B USD. Covid-19 has hurt the travel industry broadly, but trips by RV proved to be more popular as people steered clear the skies opting for ways to travel while still maintaining social distancing. GE Capital Aviation Services, or Gecas, is a part of GE Capital, which has been whittled down since the financial crisis. GE said it would reduce its debt by about $30B after the transaction closes using proceeds from the deal and existing cash. Both companies are large customers of both Boeing and rival Airbus. A combination of the two into what analysts describe as the world’s largest aircraft lessor will give them the ability to press for better aircraft prices, just as Boeing and Airbus are trying to find their footing in the pandemic.
SAKS FIFTH AVENUE OWNER SPINS E-COM- MERCE SITE INTO SEPARATE BUSINESS H BC, owners of the Hudson’s Bay depart- ment store chain in Canada, and the dis- count business Saks Off Fifth announced that it will split the luxury department store Saks Fifth Avenue’s website into a separate business from its stores after it raised $500 million. It said the venture capital firm Insight Partners has put up $500 million to take a minority stake in Saks.com, valuing the business at $2 billion. Saks’ 40 brick-and-mortar stores will become a separate business known as SFA, which will re- main wholly owned by HBC. The Covid pandemic has prompted consumers to shift their spending online, with several luxu- ry retailers showing resilience. Affluent shoppers have splurged on high-end handbags, jewelry and other accessories. CANADA’S SECURE ENERGY TO MERGE WITH TERVITA C anadian oilfield services provider Secure Energy Services Inc announced that it would buy and merge with waste man- agement service firm Tervita Corp in an all-stock deal valued at $478M CAD ($379.5M USD) in the latest consolidation in the country’s oil sector. The deal, which will value the combined company at around $2.3B CAD ($1.83B USD) comes as oil and gas companies seek to benefit from a recent run-up in crude oil prices while keeping a tight leash on costs.
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MARCH 2021 • SPOTLIGHT ON BUSINESS MAGAZINE
SPOTLIGHT ON BUSINESS MAGAZINE • MARCH 2021
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