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Sumitomo–SMBC Group to Acquire Air Lease for $65 a Share in $7.4 Billion Cash Deal

The deal positions SMBC Aviation Capital closer to AerCap in scale pending shareholder and regulatory approvals.

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Air Lease Corp., the aviation finance firm built by industry pioneer Steven Udvar-Házy of Beverly Hills, above in this Oct. 17, 2017, photo, agreed to a $7.4 billion sale to a group led by Sumitomo Corp., adding to consolidation in an industry that plays an increasingly important role in aircraft purchases. (Axel Koester for The New York Times)

Overview

  • Air Lease signed a definitive agreement to be taken private by a Sumitomo- and SMBC-led consortium with Apollo and Brookfield for $65 per share, valuing the equity at $7.4 billion or about $28.2 billion including assumed or refinanced debt.
  • The buyers formed a new Dublin-based holding company called Sumisho Air Lease, and the target will be rebranded under that name once the transaction closes.
  • SMBC Aviation Capital will acquire Air Lease’s orderbook—241 firm aircraft with deliveries through 2031—and will act as servicer to the majority of the roughly 495 aircraft in Air Lease’s in-service portfolio.
  • SMBC, Citi and Goldman Sachs Bank USA disclosed $12.1 billion of committed financing for the transaction, and Air Lease said the deal is not subject to a financing contingency.
  • Closing is targeted for the first half of 2026 following a unanimous board approval and planned shareholder vote, with a Brodsky & Smith fiduciary-duty investigation announced as shares rose about 6–7% on the news.