ELFC Completes INAV Acquisition
Engine Leasing Finance Corporation (ELFC) has finalized the purchase of the remaining shares of INAV and now plans to expand the engine portfolio of the Chicago-based engine parts specialist.
Under the terms of the buyout, the Shannon-based company will now have a 100% shareholding of the business. It initially took a 60% stake in INAV in 2017 and gradually acquired the remaining 40% over the past three years.
INAV's existing management will stay in place while ELFC hopes to grow the size of the business. ELFC has not disclosed a transaction price.
Headquartered in Crystal Lake, Illinois, INAV specializes in the buying and selling of commercial engine components in support of MROs, airlines and lessors.
Since 2017, INAV has worked with ELFC supporting aircraft lessors with exchange engine options. Typically, INAV will acquire a run-out engine for part-out in exchange for a mid-life or even full-life engine provided from ELFC’s portfolio, which it says stands at more than 350 engines currently.
Richard Hough, ELFC’s chief operating officer, tells Aviation Week that INAV first came to its attention several years ago when it was actively looking to acquire a used serviceable material specialist.
“We realized after the financial crisis 15 years ago that we were exposed to extreme market volatility in the values of run-out/part-out candidate engines that were no longer suitable for our leasing portfolio,” he says. “That started, albeit slowly, a process of seeking to invest in the end-of-life phase of engines, which culminated in the acquisition of INAV, initially at 60%."
In the near future, Hough says ELFC will focus on scaling the business to support increasing demands for material related to specific engine types, such as the CF34-10, CFM56-5B and -7B, and the V2500.
Eventually, Hough says it will look to broaden the product range, “potentially into GE90 and other widebody product lines.” He adds: “In the longer term we will focus on transition into the current technology engines as they mature.”