Sumitomo Mitsui Finance and Leasing Company, Limited (SMFL) has acquired a 35% stake in LCI, expanding LCI’s established partnership with SMFL which began in September 2020 with the launch of a $230 million helicopter leasing joint venture (JV).
The JV now has a portfolio of over 50 aircraft valued at over $550 million.
George M. Logothetis, executive chairman, Libra Group said: “We expect to progressively grow and deepen our relationship with SMFL over the years, our long-term outlook and belief system are strikingly similar. The possibilities for collaboration are endless, from aviation, to maritime, to renewable energy, to all that lies in between. We look forward to working together over many years and across many industries to meet tomorrow’s challenges.”
Masaki Tachibana, president of SMFL, said: “We relish this opportunity to make a significant equity investment into LCI and to deepen our relationship with Libra Group, a business partner that has already won our respect and admiration. The investment by SMFL into LCI is the next step in what we hope will be a series of strategic collaborations across the helicopter and relevant industries, which enables both of us to further strengthen LCI’s business. Libra Group shares our values and commitment to UN Sustainable Development Goals (SDGs), and we see many exciting opportunities ahead for partnership, innovation, and impact to societies.”
SMFL and Libra Group plan to grow LCI’s business by $1.5 billion over the coming years with significant capital investment by shareholders.
Jaspal Jandu, chief executive of LCI, said: “LCI is delighted to expand and solidify its relationship with SMFL through this transaction. Given our shared values and culture, they represent an ideal partner as we embark on the next chapter in our development. Together we intend to reinforce LCI’s position as a leading provider of leasing, financing, and investing solutions in the aviation industry.”
In the last 12 months alone, LCI has ordered up to six H175 helicopters from Airbus, two AW139 helicopters from Leonardo, acquired a 19-helicopter portfolio, and expanded into the advanced air mobility sector with the order of up to 125 ALIA-250 eVTOL aircraft from BETA Technologies, and up to 40 Chaparral VTOL aircraft from Elroy Air.
The SMFL investment will enable LCI to accelerate its planned growth over the next five years. Since its creation in 2004, LCI has undertaken over $10bn of transactions in the aviation market.