Deal Analysis: Largest lessor acquisition in history

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17 January 2012

Sumitomo's acquisition of RBS Aviation Capital took seven months and scores of lawyers to finalize.

At 8pm in London last night representatives of Sumitomo, Royal Bank of Scotland and their law firms and advisers completed the largest aircraft lessor acquisition in history. The transaction took seven months to complete after Goldman Sachs was mandated to restart the sale of RBS Aviation Capital last July.A consortium, consisting of Sumitomo Mitsui Financial Leasing (SMFL) and Sumitomo Mitsui Banking Corporation (SMBC), both of which are owned by Sumitomo Mitsui Financial Group (SMFG), and Sumitomo Corporation, will purchase the lessor for $7.3 billion.The payment for the leasing business, including all its assets, will be made with a single wire transfer from SMBC to Royal Bank of Scotland worth $7.3 billion, according to a source working on the closing.RBS identified Aviation Capital as non-core in 2009 after receiving a government bailout, even though its aircraft leasing subsidiary produced consistent returns. The sale marks the end of more than two years...

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