Stonepeak is to acquire Air Transport Services Group (ATSG), a provider of aircraft leasing and cargo transportation services, for about $3.1bn (€2.8bn) including debt.
Under the terms of a definitive agreement, which was unanimously approved by ATSG’s board, shareholders will receive $22.50 per share in cash. The purchase price represents a premium of approximately 29.3% over ATSG’s closing share price on 1 November 2024, the last full trading day prior to this announcement.
Upon completion of the transaction, ATSG’s shares will no longer trade on NASDAQ, and ATSG will become a private company.
Joe Hete, executive chairman of ATSG’s board of directors, said: “The agreement with Stonepeak will deliver immediate and certain cash value to ATSG’s shareholders at a substantial premium to recent market prices. With a history dating back to 1980, we are excited to reach this important milestone in our journey.
“Since going public in 2003, ATSG has diversified and expanded its portfolio of companies and services, becoming a global leader in midsize freighter leasing and flying, as well as a leading supplemental provider of passenger transport for the US Department of Defense and other agencies.”
James Wyper, senior managing director and head of transportation & logistics at Stonepeak, said: “ATSG plays a fundamental role in enabling the growth of e-commerce globally in a world that continues to shift away from bricks-and-mortar shopping.
“ATSG’s deep relationships with some of the world’s largest e-commerce companies and integrators, combined with the scale and capacity of their fleet and relentless focus on safety and on-time performance, gives us confidence in the company’s trajectory as a sector leader.”
Graham Brown, managing director at Stonepeak, added: “We look forward to supporting the team at ATSG to help take the business to the next level as a private company, and are excited about this addition to our North American infrastructure investment strategy.”
The transaction is expected to close in the first half of 2025.
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