Sumitomo, Apollo, Brookfield, and SMBC Aviation to Acquire Air Lease for $7.4 Billion

Sumitomo Corporation, Apollo Global Management, Brookfield Asset Management, and SMBC Aviation Capital have agreed to acquire Air Lease Corporation for $7.4 billion. The deal, which is expected to close in the first half of 2026, will see Air Lease renamed Sumisho Air Lease. The acquisition will be financed by a $12.1 billion loan provided by SMBC, Citi, and Goldman Sachs Bank USA.

Title: Sumitomo Corporation, Apollo, Brookfield, and SMBC Aviation Capital Acquire Air Lease Corporation

September 2, 2025 - Sumitomo Corporation, Apollo Global Management, Brookfield Asset Management, and SMBC Aviation Capital have agreed to acquire Air Lease Corporation (ALC) for a total valuation of approximately $7.4 billion. The acquisition, expected to close in the first half of 2026, will see ALC renamed Sumisho Air Lease. The transaction is being financed by a $12.1 billion loan provided by SMBC, Citi, and Goldman Sachs Bank USA.

The acquisition will be executed through a new holding company, Sumisho Air Lease Corporation, which will be owned by the four investors. SMBC Aviation Capital will hold a 4.99% voting rights stake and a 24.99% economic interest in the new entity. Upon completion, SMBC Aviation Capital will acquire ALC's aircraft on order and will be appointed as asset servicer by Sumisho Air Lease for the majority of its fleet.

ALC, founded in 2010 and listed on the NYSE in 2011, has a total asset value of approximately $33.3 billion as of June 30, 2025. The acquisition will strengthen SMBC Aviation Capital's position in the aircraft leasing industry, enabling it to provide aircraft leasing solutions and scale-driven investment opportunities to a broader range of airlines and aircraft investors both in Japan and overseas.

Sumitomo Corporation, Apollo, and Brookfield will provide capital to support the acquisition, joining Sumitomo Corporation and SMBC Aviation Capital as aligned investors. The new entity, Sumisho Air Lease, is expected to be an investment-grade rated aircraft lessor with a globally diverse group of airline customers and a portfolio of new technology aircraft.

The acquisition is subject to customary closing conditions, including approval by ALC's common stockholders and receipt of certain regulatory approvals. The cash consideration represents a 7% premium over ALC’s all-time high closing stock price on August 28, 2025, a 14% premium over the volume-weighted average share price during the 30 trading day period ended August 29, 2025, and a 31% premium over the volume-weighted average share price during the last 12 months' trading day period ended August 29, 2025.

The transaction is expected to benefit from the financial scale and expertise of the co-investors, positioning Sumisho Air Lease to capitalize on airline and investor demand in a supply-constrained environment.

References:
[1] https://www.marketscreener.com/news/sumitomo-mitsui-financial-smbc-aviation-capital-announces-participation-in-the-acquisition-of-air-ce7c50d3dc8ef523
[2] https://www.smbc.aero/news/2025/sumitomo-corporation-smbc-aviation-capital-apollo-and-brookfield-acquire-air-lease