Prime Highlights
- Air Lease has agreed to a $7.4 billion takeover, marking a major step in the growth and consolidation of the aircraft leasing industry.
- The acquisition will help Air Lease and its investors expand their market presence and provide airlines with modern, cost-efficient aircraft.
Key Facts
- Shareholders will receive $65 per share, an 8% premium over the recent closing price, with the total company valuation around $28.2 billion.
- The aircraft leasing industry now owns more than half of the world’s passenger jets, growing from 51% in 2009 to 58% today.
Key Background:
Aircraft lessor Air Lease, established by aviation industry veteran Steven Udvar-Házy, has accepted a take-private bid offering $7.4 billion, a major move towards consolidation of the global aircraft leasing market. The acquisition is led by a group of investors including Japan’s Sumitomo Corporation, SMBC Aviation Capital, and prominent asset managers Apollo and Brookfield.
Under the terms of the deal, shareholders of Los Angeles-based Air Lease will receive $65 per share, representing a nearly 8% premium over the company’s recent closing price. Including debt, the transaction values Air Lease at approximately $28.2 billion. The deal should finish in the first half of 2026, and the new company will be in Dublin.
According to aviation consultancy IBA Group, the aircraft leasing industry currently owns more than half of the world’s passenger planes, which has increased to 58 percent today, as opposed to 51 percent in 2009. This trend of consolidation is likely to build a stronger market base among the market leaders, as well as allowing the market leaders to scale.
Air Lease, which ended the second quarter with 495 planes in its fleet, is ranked as the fifth-largest aircraft lessor globally when including its backlog. This deal is part of a trend of big acquisitions in the aircraft leasing industry, including AerCap buying GE’s leasing business and AviLease being bought by Saudi Arabia’s sovereign wealth fund.
Udvar-Házy, who retired from Air Lease in March, said that since starting the company in 2010, their goal has been to help airlines get access to the latest and most efficient aircraft. His vision has made aircraft leasing an important part of how airlines operate today.
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