GE, AerCap join air leasing businesses in $30 billion deal

General Electric is combing its aircraft leasing business with Ireland’s AerCap Holdings in a deal valued at more than $30 billion, a big step in what has become a six year endeavor to reshape the one-time global conglomerate.

The agreement to push GE Capital Aviation Services, or GCAS, into a separate business puts GE closer to its goal of shedding most of its enormous financial wing that nearly sank it during the 2008 financial crisis.

AerCap will pay about $24 billion in cash for GCAS, and GE will take an approximately 46% ownership stake in combined company, and $1 billion paid in AerCap notes or cash at closing.

GE also said Wednesday that its board will recommend shareholders approve a reverse stock split at a ratio of 1-for-8 and a corresponding proportionate reduction in the number of authorized shares of common stock.

GE plans to lower its debt by about $30 billion after the deal's closing using transaction proceeds and existing cash sources. This will bringing its total debt reduction since the end of 2018 to more than $70 billion.