Global investor consortium to acquire Air Lease in $7.4B deal
Under the terms of the agreement, Air Lease common stockholders will receive $65 per share in cash.
Leading global aircraft leasing company based in Los Angeles, California, Air Lease has signed a definitive agreement to be acquired by a newly formed Dublin-based holding company, backed by Sumitomo Corporation, SMBC Aviation Capital, and investment vehicles affiliated with Apollo-managed funds and Brookfield, according to an official release from Air Lease.
Under the terms of the merger agreement, at the closing of the transaction, Air Lease stockholders will receive $65 in cash for each share of Class A common stock of Air Lease, representing a total valuation of approximately $7.4 billion, or approximately $28.2 billion including debt obligations to be assumed or refinanced net of cash.
The cash consideration represents a 7% premium over Air Lease’s all-time high closing stock price on August 28, 2025, a 14% premium over the volume weighted average share price during the 30 trading day period ended August 29, 2025, and a 31% premium over the volume weighted average share price during the last 12 months' trading day period ended August 29, 2025.
“Since founding Air Lease in 2010, we have been unwavering in our mission to shape the future of the aviation industry and provide airlines around the world with access to the most modern, fuel-efficient aircraft. After thoughtful consideration, the Board has unanimously determined that this transaction represents the best path forward for our company as it will deliver an immediate premium and certainty in cash value to our Class A common stockholders,” says Steven Udvar-Hazy, Chairman of the Board of Air Lease.
In July this year, Air Lease announced the cancellation of its order for seven A350 freighters. The company had become the launch lessor for the type after signing a Letter of Intent with Airbus at the 2021 Dubai Airshow. Airbus told The STAT Trade Times that Air Lease remains a key customer, with nearly 500 orders placed across the Airbus portfolio, from the A220 to the A350. The lessor currently has a backlog of about 170 Airbus aircraft. With this cancellation, AviLease is now the only leasing company with an A350 freighter order.
John L. Plueger, Chief Executive Officer and President of Air Lease, says, “This is an exciting next chapter for Air Lease and is a testament to the strength of Air Lease’s business, our talented team, and the long-standing partnerships we’ve fostered across the global aviation industry. I am fully confident that this transaction will benefit all Air Lease common stockholders and the industry we serve. We would like to thank our talented and dedicated employees for helping us achieve this significant milestone and for their continued dedication as we prepare to enter this new chapter.”
“We are honoured to have reached this significant agreement together with SMBC Aviation Capital, Apollo, and Brookfield. Through this transaction, we will achieve greater scale and profitability, positioning the Sumitomo Corporation Group’s aircraft leasing business as one of the largest globally in terms of owned and managed aircraft through Sumisho Air Lease’s highly attractive portfolio centred on new tech aircraft. This will further strengthen our industry standing and enhance our competitive advantage. Sumisho Air Lease will be a core part of the Sumitomo Corporation Group’s wider investments in the aviation sphere. Sumisho Air Lease’s inclusion within the shareholder eco-system provides an opportunity to create powerful new synergy,” says Takao Kusaka, Group CEO, Transportation & Construction Systems Group of Sumitomo Corporation.
Peter Barrett, Chief Executive Officer of SMBC Aviation Capital, says, “This transaction is transformational for our business and the leasing landscape. Investing in Sumisho Air Lease, purchasing their orderbook, and becoming servicer to the substantial majority of Sumisho Air Lease’s portfolio will enable us to deploy our financial scale and strength to meet the evolving needs of our customers and take a strategic lead in reshaping our sector. In our sector, economies of scale matter. Our industry is evolving at a pace and requires significant and diverse pools of capital so that our airline and investor customers can be provided with the products and services they need. As one of the most well-regarded leasing platforms, with a portfolio focused on liquid, in-demand, new tech aircraft, Air Lease presents an attractive opportunity for the co-investors.”
The $65.00 per share cash consideration represents a 7% premium to Air Lease’s all-time high closing price on August 28, 2025, a 14% premium to the 30-day volume-weighted average price as of August 29, 2025, and a 31% premium to the 12-month volume-weighted average price as of the same date.
“Apollo’s partnership with SMBC Aviation Capital and Sumitomo Corporation is a testament to our core principle of delivering tailor-made, scaled, and innovative capital solutions to corporations. This important industry transaction highlights the flexibility of Apollo’s long-term insurance capital and our creative approach to high-grade capital solutions. Apollo has a distinguished and established track record in aviation investing, led by our industry experts at Perseus Aviation, and we are pleased to deliver the full strength of the Apollo ecosystem to the success of this transaction,” states Jamshid Ehsani, Partner, Apollo.
“We are pleased to partner with SMBC Aviation Capital and Sumitomo Corporation in this landmark transaction, which highlights Brookfield’s ability to provide hybrid solutions in an environment with a growing need for private capital. By combining our credit expertise, industry insight, and large-scale capital with the strengths of our strategic partner manager, Castlelake, a leader in aviation investing, this transaction demonstrates the value of flexibility and scale in today’s market,” says Craig Noble, CEO of Brookfield Credit.
Air Lease’s Board of Directors has unanimously approved the agreement. The transaction, expected to close in the first half of 2026, remains subject to customary closing conditions, including approval by holders of the company’s Class A common stock and certain regulatory clearances. Directors and select executive officers have committed to vote their shares in favor of the deal. The transaction is not subject to any financing contingency.
J.P. Morgan Securities is acting as financial advisor to Air Lease, and Skadden, Arps, Slate, Meagher & Flom is acting as Air Lease’s legal advisor.
Given the pending transaction, Air Lease will not host an earnings call related to its financial results for the quarter ended September 30, 2025, or subsequent quarters or fiscal years while the transaction is pending.
