Air Lease Accepts $7.4 Billion Takeover in Sumitomo, SMBC, Apollo and Brookfield-Led Deal

New York — Air Lease, the world's largest aircraft leasing company, has accepted a $7.4 billion takeover that will take the Los Angeles-based firm private, another wave of consolidation to hit the global aircraft rental market.

The deal, announced Tuesday, is being spearheaded by Japan's Sumitomo Corporation and SMBC Aviation Capital, along with asset managers Apollo and Brookfield. Air Lease shareholders will be offered $65 a share, an almost 8 percent premium on Friday's close. In terms of debt, the deal places a value on the company of around $28.2 billion.

Established in 2010 by aviation innovator Steven Udvar-Házy, Air Lease is the globe's fifth-largest aircraft lessor with 495 aircraft in its owned fleet. Including its backlog, the firm has expanded to become one of the leaders in an industry now operating 58 percent of the world's passenger jet fleet. The new company will be based in Dublin, with the transaction set to close in the first half of 2026.

The shift is welcomed as aircraft leasing companies take advantage of premium rental rates, fueled by pandemic-era shortages and ongoing demand for new, fuel-efficient aircraft. "It's common sense when you think it's the lowest-cost way to purchase market growth," IBA Group chief economist Stuart Hatcher said.

The transaction comes on the heels of other notable deals in the industry, such as GE's 2021 sale of its leasing business to AerCap and Standard Chartered's 2023 sale of its aircraft leasing unit to Saudi-backed AviLease.

Udvar-Házy, sometimes referred to as the "godfather of aircraft leasing," founded his first leasing business in 1973 prior to the establishment of Air Lease in 2010. He recently retired earlier this year. "Since our establishment of Air Lease in 2010, we have remained true to our vision of transforming the future of the aviation industry and offering airlines access to the newest, most fuel-efficient aircraft," he stated in a release.