US-based Air Transport Services Group, owner of ABX Air, ATI - Air Transport International, and Omni Air International, has been acquired by American investment firm Stonepeak in an all-cash transaction valued at approximately USD3.1 billion.
In a filing with the US Securities and Exchange Commission, ATSG disclosed that it will merge with Stonepeak Nile Parent LLC and its subsidiary Stonepeak Nile MergerCo Inc. In the deal, MergerCo will merge into ATSG, which will continue to operate under its existing brand as a wholly-owned subsidiary of Stonepeak.
Stonepeak will fund the acquisition through a combination of equity and debt financing. Stonepeak Infrastructure Fund IV LP committed to the equity portion, while Barclays Bank, RBC Capital Markets, Wells Fargo Bank, and Jefferies Finance are providing debt financing. As a result of the acquisition, ATSG’s shares will no longer trade on the NASDAQ and the company will become private.
ATSG’s common stock will be cancelled and stockholders will receive USD22.50 per share in cash, representing “a premium of approximately 29.3% over ATSG’s closing share price on November 1, 2024, the last full trading day prior to this announcement.”
Besides the three cargo carriers, ATSG also owns leasing company Cargo Aircraft Management, bundled services provider Airborne Global Solutions, training firm Airborne Training Services, MRO Airborne Maintenance & Engineering Services, and PEMCO Conversions. The ch-aviation fleets module shows Cargo Aircraft Management owns a fleet of 149 aircraft.
According to its financial results, ATSG’s three largest customers are the United States Department of Defense (DoD), Amazon.com, and DHL Express, each accounting for 31%, 32%, and 13% of the company’s revenue in the first half of 2024. Amazon, which held warrants to purchase ATSG stock, will cash out under the acquisition's terms and will not retain an equity stake in the group.
As of June 30, 2024, ATSG leased one B767-200(F) and thirteen B767-300Fs to DHL and operated four additional B767s under an additional CMI agreement. Additionally, it leased thirty B767 freighters to Amazon and provided cargo and passenger airlift services to the DoD.
The merger agreement does not address the long-term operational plans for any of the carrier subsidiaries, however, ch-aviation understands nothing will change in the short-term.
