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Air Lease to Merge in $28.2 Billion Deal Creating Leading Aircraft Leasing Company

Air Lease to Merge in $28.2 Billion Deal Creating Leading Aircraft Leasing Company
Air Lease Corporation (NYSE: AL) has announced a definitive agreement to merge with a new Dublin-based holding company supported by Sumitomo Corporation, SMBC Aviation Capital, and investment funds managed by Apollo and Brookfield. Valued at approximately $28.2 billion including debt, the transaction is set to establish one of the world’s largest aircraft leasing firms.
Terms of the Merger and Shareholder Impact
Under the terms of the agreement, Air Lease shareholders will receive $65.00 in cash per share of Class A common stock, reflecting a total equity value of around $7.4 billion. This offer represents a 7% premium over Air Lease’s all-time high closing price on August 28, 2025, a 14% premium over the 30-day volume-weighted average, and a 31% premium over the 12-month average ending August 29, 2025.
Steven Udvar-Hazy, Chairman of the Board and founder of Air Lease, emphasized the company’s commitment since its inception in 2010 to advancing the aviation industry by providing airlines with access to modern, fuel-efficient aircraft. He stated that the Board unanimously believes the transaction offers the best path forward, delivering immediate premium value and certainty to shareholders.
John L. Plueger, CEO and President, described the merger as an exciting new chapter that reflects the strength of Air Lease’s business, its skilled workforce, and enduring partnerships within the global aviation sector.
Outlook and Industry Implications
The merger is anticipated to close in the first half of 2026, subject to customary closing conditions including shareholder and regulatory approvals. Air Lease’s directors and certain executive officers have committed to vote in favor of the deal, which is not contingent on financing.
While the combined entity will emerge as a global leader in aircraft leasing, the transaction is expected to face regulatory scrutiny due to its scale and market impact. The integration of operations between Air Lease and its new partners may present challenges, and initial investor sentiment could be cautious given the size of the deal. However, industry analysts suggest that long-term optimism may grow as the merged company capitalizes on its expanded fleet and customer base.
Competitors are likely to respond strategically, recalling moves such as AerCap’s acquisition of GE Capital Aviation Services. Additionally, ongoing supply chain disruptions in the aviation sector could affect aircraft delivery schedules, posing challenges for all major leasing companies, including the newly formed entity.
J.P. Morgan Securities LLC is acting as financial advisor to Air Lease, with Skadden, Arps, Slate, Meagher & Flom LLP serving as legal counsel. In light of the pending transaction, Air Lease has announced it will not hold its scheduled third-quarter earnings call.

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