Widebody freighter aircraft leasing, air transport operations, and support services provider Air Transport Services Group (ATSG) has entered into a definitive agreement to be acquired by Stonepeak in all-cash transaction of approximately $3.1bn.
Under the agreement, holders of ATSG's common shares will receive $22.50 per share in cash.
"The agreement with Stonepeak will deliver immediate and certain cash value to ATSG’s shareholders at a substantial premium to recent market prices," said ATSG executive chairman of the board of directors Joe Hete. “Following the board’s careful evaluation of the transaction, we are confident it is the best path forward and maximises value for ATSG’s shareholders, while also benefiting our employees, customers, partners, communities and other stakeholders.”
The purchase price represents 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, and a 45.5% premium over ATSG’s volume-weighted average price (VWAP) over the prior 90 trading days. Upon completion of the transaction, ATSG's shares will no longer trade on NASDAQ, and ATSG will become a private company.
Stonepeak is an alternative investment firm that specialises in infrastructure and real assets.
“In Stonepeak, we have found a partner that recognizes the power of our… strategy to provide comprehensive aircraft leasing and operating solutions to our customers," said ATSG CEO Mike Berger. “With Stonepeak’s investment and extensive expertise in transportation and logistics and asset leasing, ATSG will be well positioned to further expand its global presence in the air cargo leasing market and enhance its service offerings to customers.”
Stonepeak senior managing director and head of transportation & logistics James Wyper said: “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.”
The transaction is expected to close in the first half of next year. As a result of the transaction, it has cancelled its earnings conference call scheduled for November 8, 2024, though will still publish the results the same day.