Air Lease (US:AL) Zhi Tong Cai Jing·2025-09-03 02:52Core Viewpoint - Air Lease has agreed to be acquired by an investor consortium for $7.4 billion, marking a significant move towards the privatization of the company and indicating a trend of consolidation in the aircraft leasing industry [1][2]. Group 1: Acquisition Details - The acquisition is led by Japan's Mitsui & Co. and SMBC Aviation Capital, with participation from Apollo and Brookfield Asset Management [1]. - Shareholders of Air Lease will receive $65 per share, representing an almost 8% premium over the closing price last Friday [1]. - Including debt, the company's valuation is approximately $28.2 billion [1]. Group 2: Industry Context - The aircraft leasing business has seen a rise in rental prices due to aircraft shortages caused by the COVID-19 pandemic and supply chain issues, with rental rates reaching record levels [1]. - According to IBA Group, the aircraft leasing sector now owns over 58% of the global passenger fleet, up from 51% in 2009 [1]. - The consolidation trend is expected to help companies scale up amid challenges faced by airlines, such as overcapacity and declining profits [2]. Group 3: Company Background - Air Lease, founded by Steven Udvar-Házy in 2010, has a fleet of 495 aircraft as of the end of the second quarter [2]. - The company is recognized as the fifth-largest aircraft leasing company globally, including reserve orders [2]. - The new company headquarters will be located in Dublin following the completion of the transaction, expected in the first half of 2026 [2]. Group 4: Historical Transactions - The acquisition of Air Lease is part of a series of recent transactions in the aircraft leasing sector, including GE's sale of its aircraft leasing division to AerCap in 2021 [4]. - Two years ago, Standard Chartered agreed to sell its aircraft leasing business to AviLease, owned by a Saudi sovereign wealth fund [5].