A321neo ALC scaled
PR:
Air Lease (NYSE: AL) (“Air Lease”) announced today that it has entered into a definitive agreement to be acquired by a new holding company based in Dublin, Ireland, whose shares are held by Sumitomo Corporation, SMBC Aviation Capital Limited, and investment vehicles affiliated with Apollo managed funds (“Apollo”) and Brookfield. Under the terms of the merger agreement, at the closing of the transaction, Air Lease stockholders will receive $65.00 in cash for each share of Class A common stock of Air Lease, representing a total valuation of approximately $7.4 billion, or approximately $28.2 billion including debt obligations to be assumed or refinanced net of cash.
“Since founding Air Lease in 2010, we have been unwavering in our mission to shape the future of the aviation industry and provide airlines around the world with access to the most modern, fuel-efficient aircraft. After thoughtful consideration, the Board has unanimously determined that this transaction represents the best path forward for our company as it will deliver an immediate premium and certainty in cash value to our Class A common stockholders,” said Steven Udvar-Hazy, Chairman of the Board of Air Lease.
John L. Plueger, Chief Executive Officer and President of Air Lease, said, “This is an exciting next chapter for Air Lease and is a testament to the strength of Air Lease’s business, our talented team and the long-standing partnerships we’ve fostered across the global aviation industry. I am fully confident that this transaction will benefit all Air Lease common stockholders and the industry we serve. We would like to thank our talented and dedicated employees for helping us achieve this significant milestone and for their continued dedication as we prepare to enter this new chapter.”
The cash consideration of $65.00 per share represents a 7% premium over Air Lease’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 month trading period ended August 29, 2025.
The Board of Directors of Air Lease has unanimously approved the agreement. The transaction is subject to customary closing conditions, including approval by Air Lease’s Class A common stockholders and receipt of certain regulatory approvals, and is expected to close in the first half of 2026. Air Lease’s directors and certain executive officers have agreed to vote the shares of Class A common stock held by them in favor of the transaction. The transaction is not subject to any financing contingency.
J.P. Morgan Securities LLC is acting as financial advisor to Air Lease and Skadden, Arps, Slate, Meagher & Flom LLP is acting as Air Lease’s legal advisor.
Third Quarter Earnings Conference Call Update
Given the pending transaction, Air Lease will not host an earnings call related to its financial results for the quarter ended September 30, 2025, or subsequent quarters or fiscal years while the transaction is pending.
Notes:
- This is huge aviation industry news. The ALC team is comprised of industry veterans, with names like Steven Udvar-Hazy and John Plueger already etched into industry history.
- The bigger picture will be what comes next? Is the industry going to lose some of its most influential people? News earlier this year about one executive joining Alaska Airlines appeared odd; now we know why.
- ALC leads the market in several key areas, notably its influence over Airbus and Boeing leadership. We have the A330neo because Steven Udvar-Hazy thought the first iteration was a dud. He was right. Here’s John Leahy making the case for the A330neo.
- Hazy also tried with Boeing. He also influenced the development of the Boeing 787 and pushed for an extended-range version of the 777. His early warnings about 737 MAX production targets weren’t heeded—his critiques of production shortfalls and strategic missteps, such as the 777X and lack of an NMA.
- At air shows, your correspondent’s favorite events were attended by messrs Leahy, Hazy, and Plueger. You knew the Q&A would be the industry’s most comprehensive update, coming from the heart of the machine. Attending made the case for the event expense.
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