Today, Air Lease (AL) announced that it has entered into an 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 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 they hold. Subject to customary approvals, the deal is expected to close in the first half of 2026.

We were among the earliest buy-side analysts who covered Air Lease, recommending it in our May 2013 issue. Since that time, shares have returned 140.6% as of September 2, 2025. Our three follow-on recommendations have all been profitable, with gains of 66.6% since our April 2014 selection, 81.9% since our June 2017 selection, and 56.0% for our most recent recommendation in the January 2024 issue. The company has certainly weathered some difficult times in the last 12 years, with the pandemic altering global travel trends, so the end result is a welcome conclusion to our travels with the airline leasing company.

The $65 acquisition price is a premium to the $60.16 price as of the publication of the September 2025 issue of the SmallCap Informer.

As is our usual preference, we see it prudent to exit the company now near its current price of $64.14 instead of waiting for the completion of the deal at the $65 valuation next year. Shareholders can use the proceeds to re-invest in a different security that has a better total return potential. If the deal is not completed, the share price would likely fall and a new re-entry point might be worthwhile to consider.

We therefore recommend Air Lease for sale by subscribers and are discontinuing coverage.