Sumitomo Mitsui Finance and Leasing (SMFL) plans to acquire British helicopter lessor Macquarie Rotorcraft in a deal worth just over $1 billion, Nikkei reported.
The transaction, which includes debt, will see SMFL LCI Helicopters purchase all shares from a Macquarie Group asset manager, with the acquisition expected to close by the end of June.
Macquarie Rotorcraft currently holds the industry’s third position with approximately 120 helicopters. SMFL’s fleet, including those on order and owned by affiliates, stands at about 190. The combined total of over 300 helicopters would match Ireland-based industry leader Milestone Aviation Group’s fleet of 322.
The helicopter leasing market faces supply constraints as Russia’s war in Ukraine has diverted many military helicopters, making it difficult to secure new leases in Europe. This acquisition allows SMFL, jointly owned by Sumitomo Mitsui Financial Group and Sumitomo Corp., to significantly expand its holdings.
Both companies specialize in midsize helicopters with capacity for around 10 passengers. The merger is expected to reduce operational costs and broaden the customer base.
The move helps SMFL diversify its business risk after its core aircraft leasing operations suffered during the COVID-19 pandemic. Meanwhile, helicopter demand remained robust for emergency medical services throughout the pandemic.
