Summary
Arthur J. Gallagher & Co. (AJG) filed an 8-K on January 31, 2007, reporting on a definitive agreement. Specifically, on January 25, 2007, a 90% owned subsidiary, AJG Capital, Inc., completed the sale of its 100% ownership in Aviacargo Leasing Limited (Aviacargo) to Aviacargo 27125/27347, LLC and Erste Finance Malta Limited Partnership. Aviacargo is an airplane leasing company that operates two cargo airplanes leased to the French Postal Service. The sale of Aviacargo resulted in a purchase price of $0.7 million. This transaction led to an after-tax loss for Gallagher of approximately $5.0 million, which was recognized in the fourth quarter of 2006 within the Financial Services Segment. As part of the divestiture, $27.5 million in net fixed assets and $27.9 million in debt were transferred to the buyers.
Key Highlights
- 1Sale of 100% ownership in Aviacargo Leasing Limited completed on January 25, 2007.
- 2The transaction involved AJG Capital, Inc. (a 90% owned subsidiary of AJG) as the seller.
- 3Buyers are Aviacargo 27125/27347, LLC and Erste Finance Malta Limited Partnership.
- 4Aviacargo Leasing Limited owns two cargo airplanes leased to the French Postal Service.
- 5Total purchase price for Aviacargo was $0.7 million.
- 6The divestiture resulted in an approximate $5.0 million after-tax loss for AJG, recognized in Q4 2006.
- 7$27.5 million in net fixed assets and $27.9 million in debt were transferred to the buyers.