Several major financial institutions and leasing companies, including Corporation, SMBC Aviation Capital, Apollo-managed funds, and Brookfield, announced that they have come to a definitive agreement to acquire Air Lease Corporation. Air Lease, which is a leading aircraft lessor founded by Steven F. Udvar-Házy and John L. Plueger, primarily manages a portfolio of new technology aircraft, positioning it as a key player in the industry.
Once the transaction is finalized, Air Lease will be renamed Sumisho Air Lease, marking the beginning of a new chapter for the company. This rebranding signifies not only a change in name but also the beginning of a new strategic direction. Supporting this transaction, Apollo and Brookfield have agreed to provide the necessary capital, which underscores the confidence these financial giants have in the prospects of the lessor.
Under the terms of the deal, shareholders of Air Lease will be paid $65 per share in cash. This offer values the company at approximately $7.4 billion. When considering the company’s debt obligations, which will be assumed or refinanced, the total valuation increases to around $28.2 billion. The cash offer itself represents a 7% premium over Air Lease’s all-time high closing share price on August 28, 2025, as well as a 14% premium over the volume-weighted average share price during the 30 trading days ending August 29, 2025. Over the last year, the premium amounts to about 31% compared to the volume-weighted average share price during the period ending on August 29, 2025. These figures highlight the premium being paid to current shareholders, reflecting the value and confidence placed in the company’s future.
The combined entity, Sumisho Air Lease, benefits from the established reputation of Air Lease as a reliable aircraft lessor, coupled with the robust capabilities of SMBC Aviation Capital. This partnership is expected to bring greater scale and financial strength, enabling them to address better the fast-evolving and increasingly complex needs of airline customers worldwide. Additionally, both Sumitomo and SMBC Aviation Capital bring deep industry expertise and a long-standing commitment to the aviation leasing sector, which is expected to support the growth and stability of the new company.
The board of directors at Air Lease has unanimously approved this agreement, which is a positive sign of widespread support for the transaction. Of course, it remains subject to certain closing conditions, including approval from Air Lease’s shareholders and relevant regulatory authorities. The companies anticipate that the transaction will be completed in the first half of 2026.
Furthermore, the directors and several senior executives who hold shares in the company have agreed to vote in favor of the deal, demonstrating their confidence in this strategic move. Financing for the transaction has been largely secured, with SMBC, Citi, and Goldman Sachs Bank USA committing a total of $12.1 billion. Looking ahead, Sumisho Air Lease is also expected to receive investment-grade ratings from major agencies such as S&P and Fitch, which will further reinforce its financial stability and attractiveness as a lessor in the global aviation market.
Advisors: Citigroup Global Markets Limited and Goldman Sachs International are acting as financial advisors to SMBC Aviation Capital. Davis Polk & Wardwell LLP and McCann Fitzgerald are acting as legal advisors to SMBC Aviation Capital. Goldman Sachs Japan and Citigroup Global Markets Japan are acting as financial advisors to Sumitomo Corporation. Norton Rose Fulbright is acting as legal advisor to Sumitomo Corporation. Milbank LLP is acting as legal advisor to Apollo and Brookfield.
KEY QUOTES:
“We are honored 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 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.”
Takao Kusaka, Group CEO, Transportation & Construction Systems Group of Sumitomo Corporation
“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 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.”
Peter Barrett, Chief Executive Officer of SMBC Aviation Capital
“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 the 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.”
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.”
Craig Noble, CEO of Brookfield Credit
