SMBC Aviation Capital, Sumitomo Corporation, Apollo and Brookfield to Acquire Air Lease Corporation in a 100 Percent Cash Transaction

Sumitomo Corporation, SMBC Aviation Capital, Apollo and Brookfield have reached a definitive agreement to acquire Air Lease Corporation through a newly established entity, Sumisho Air Lease Corporation.

Sumitomo Corporation, SMBC Aviation Capital, Apollo and Brookfield to Acquire Air Lease Corporation in 100 Percent Cash Transaction - Courtesy SMBC Aviation Capital

On Tuesday (September 2, 2025), SMBC Aviation Capital announced that in partnership with Sumitomo Corporation, Apollo, and Brookfield, they have entered a definitive agreement to acquire Air Lease Corporation (ALC).  Air Lease will be acquired through a newly established entity Sumisho Air Lease Corporation (Ireland) DAC, and will be renamed Sumisho Air Lease Corporation.  Sumisho Air Lease and its orderbook is expected to transfer to SMBC Aviation Capital as part of the transaction, while SMBC Aviation Capital will act as a servicer to Sumisho Air Lease’s portfolio.  Apollo and Brookfield will provide capital to support the acquisition, joining Sumitomo Corporation and SMBC Aviation Capital as aligned investors.

In Tuesday’s announcement, Sumitomo Corporation’s Group CEO - Transportation & Construction Systems Group, Takao Kusaka, said, 

“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 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.”

Also commenting on the transaction, SMBC Aviation Capital’s CEO, Peter Barrett, said,

“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.”

Further commenting on the acquisition of ALC, Apollo Partner, Jamshid Ehsani, 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 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.”

Brookfield Credit’s CEO, Craig Noble, added,

“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.”

Air Lease Corporation (ALC), a leading aircraft lessor founded by Steven F. Udvar-Házy and John L. Plueger, has a portfolio primarily comprised of new technology aircraft.  Under the terms of the agreement, ALC’s common stockholders will receive $65.00 per share in cash, representing a total valuation of approximately $7.4 billion, or around $28.2 billion including debt obligations to be assumed or refinanced net of cash.  The cash consideration represents a 7.0 percent premium over Air Lease’s all-time high closing stock price on August 28, 2025, and a 14 percent premium over the volume weighted average share price during the 30-trading day period ended August 29, 2025.  This also represents a 31 percent premium over the volume weighted average share price during the last 12 months’ for the trading day period ended August 29, 2025.

Source: SMBC Aviation Capital