Sumitomo Corporation, SMBC Aviation Capital, Apollo, and Brookfield have announced their definitive agreement to acquire Air Lease Corporation (Air Lease), a aircraft lessor founded by Steven F. Udvar-Házy and John L. Plueger, with a portfolio primarily comprising new-technology aircraft. Upon completion, Air Lease will be renamed Sumisho Air Lease, a newly established entity. Apollo and Brookfield have agreed to provide capital in support of the transaction.
Under the terms of the agreement, holders of Air Lease common stock will receive US$65.00 per share in cash, representing a total valuation of approximately US$7.4 billion, or around US$28.2 billion including debt obligations to be assumed or refinanced, net of cash. The cash consideration equates to a 7% premium over Air Lease’s all-time high closing share price on August 28 2025, a 14% premium over the volume-weighted average share price during the 30 trading days ending August 29 2025, and a 31% premium over the volume-weighted average share price during the 12-month trading period ending August 29 2025.
Takao Kusaka, Group CEO, Transportation & Construction Systems Group of Sumitomo Corporation, comments: “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.”
“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” comments 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.” states Jamshid Ehsani, Partner at Apollo.
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.” comments Craig Noble, CEO of Brookfield Credit.
