Aircraft lessor Air Lease Corporation has agreed to be acquired by Sumitomo Corporation, SMBC Aviation Capital, Apollo and Brookfield for $7.4bn (€6.4bn).
The buyers are offering to acquire Air Lease for $65 per share, an amount that represents a 7% premium over the NYSE-listed firm’s all-time high closing stock price on 28 August 2025.
The offer gives Air Lease a total valuation of approximately $7.4bn, or approximately $28.2bn when including debt obligations to be assumed or refinanced net of cash, the companies said.
Based in Los Angeles, California, Air Lease is a global aircraft leasing company with a portfolio that mainly consists of new technology aircraft.
Air Lease will be renamed Sumisho Air Lease Corporation once the deal completes, and its orderbook is expected to transfer to SMBC Aviation Capital as part of the transaction. SMBC Aviation Capital will act as a servicer to Sumisho Air Lease’s portfolio.
Takao Kusaka, group CEO, transportation and construction systems group at Sumitomo Corporation, said: “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 centered 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.”
Peter Barrett, CEO of SMBC Aviation Capital, said: “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 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.”
Jamshid Ehsani, partner, Apollo, said: “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.”
Craig Noble, CEO of Brookfield’s credit business, said: “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.”
John L Plueger, CEO and president of Air Lease, said: “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.”
To read the latest IPE Real Assets magazine click here.
