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Air Lease Set to be Purchased for $65.00 Per Share in Cash

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Key Takeaways

  • AL shareholders will receive $65 per share in cash, valuing the deal at nearly $7.4 billion.
  • Deal completion is expected in H1 2026, pending shareholder and regulatory approvals.
  • AL will not host its third-quarter 2025 earnings call while the transaction is pending.

Air Lease Corporation (AL - Free Report) recently announced that it has signed a definitive agreement, wherein Air Lease is set to be purchased by a Dublin, Ireland-based new holding company.

Shares of the new holding company are held by Sumitomo Corporation, SMBC Aviation Capital Limited, and investment vehicles affiliated with Apollo managed funds (Apollo) and Brookfield.

Subject to customary closing conditions, which include approval by Air Lease’s Class A common shareholders and receipt of certain regulatory approvals, the deal is anticipated to be completed in the first half of 2026.

The deal is, however, not subject to any financing contingency.

AL’s board of directors has already ratified the agreement. 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.

Steven Udvar-Hazy, chairman of Air Lease’s board, stated, “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.”

AL’s Acquisition Deal Details

Per the aforesaid merger agreement, Air Lease shareholders should receive $65 per share of Class A common stock in cash at the closure of the deal. This reflects a total value of almost $7.4 billion, or $28.2 billion including debt obligations to be assumed or refinanced net of cash.

The cash consideration reflects a 7% premium over Air Lease’s all-time high closing stock price on Aug. 28, 2025, a 14% premium over the volume weighted average share price during the 30-trading-day period ended Aug. 29, 2025, and a 31% premium over the volume weighted average share price during the last 12-month trading period ended Aug. 29, 2025.

John L. Plueger, chief executive officer and president at Air Lease, stated, “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.”

Considering the pending transaction, Air Lease will not host an earnings call for the third quarter of 2025, or subsequent quarters or fiscal years.

AL’s Zacks Rank & Price Movement

Currently, AL carries a Zacks Rank #3 (Hold).

Shares of AL have performed exceedingly well on the bourse on Sept. 2, 2025, closing the trading session at $64.28 per share, which is up 6.76% from the previous day's closing. The surge comes on the heels of the announcement of the agreed-upon sale of Air Lease to a newly formed Dublin-based holding company.

Stocks to Consider

Investors interested in the Transportation sector may also consider LATAM Airlines Group (LTM - Free Report) and SkyWest (SKYW - Free Report) .

LTM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

LTM has an expected earnings growth rate of 45% for the current year. The company has a mixed earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the remaining one, delivering an average beat of 4.04%.

SKYW currently sports a Zacks Rank #1.

SkyWest has an expected earnings growth rate of 28.06% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 21.92%.


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