As had been widely anticipated, a group of investors led by New York private equity firm Apollo Global Management will buy Atlas Air Worldwide Holdings for around USD2.9 billion, the two companies said in a statement.

The consortium, which also includes affiliates of New York private equity investor JF Lehman & Co and Boston-based hedge fund Hill City Capital, agreed to pay USD102.50 per share in cash, which is 35% more than the company’s price before the deal was announced and about 55% more than its 30-day average price. With items including debt, the deal’s enterprise value is about USD5.2 billion.

The transaction is expected to close in the fourth quarter of 2022 or first quarter of 2023 and is subject to approval from Atlas shareholders. On completion, Atlas Air Worldwide will become a privately-held company and its shares will no longer be listed on the Nasdaq stock exchange. It will continue operating under the same name and will still be led by president and CEO John Dietrich and the current executive team, the statement stressed.

Committed financing in support of the transaction has been provided by Goldman Sachs, Barclays, Apollo Capital Management, Mizuho, and Credit Agricole.

Atlas Air Worldwide Holdings is the parent company of Atlas Air (5Y, New York JFK) and freighter-centric lessor Titan Aviation Holdings and is also the majority shareholder of Polar Air Cargo (PO, New York JFK). The investment in Atlas expands the aviation portfolio at Apollo, which also owns stakes in Sun Country Airlines (SY, Minneapolis St. Paul International) and airport service provider Swissport. Both Atlas and Sun Country provide cargo aircraft to Amazon.com’s carrier Amazon Air. Other Atlas Air customers include Boeing, FedEx, and MotoGP, according to its website.

International Air Transport Association figures show that global demand for air freight dipped by 4.2% during the first half of 2022 from the same period a year earlier but was still 2.2% higher than pre-Covid levels. Risks to investors in the market include surging fuel prices and staff shortages.

In a separate release, Atlas Air Worldwide Holdings announced its financial results for the second quarter ended June 30. Revenue for the quarter increased 21% year-on-year to USD1.2 billion, but profit fell by 18% to USD88.3 million. Dietrich commented: “Through the first half of the year, global airfreight volumes exceeded pre-pandemic levels, while capacity remains constrained, particularly on key long-haul cargo trade lanes.”