ATSG Merges with Stonepeak, Goes Private
Stockholders of Air Transport Services Group (ATSG), a global leader in widebody freighter leasing and cargo/passenger charter/ACMI operations, have given the green light to the company’s merger into New York-based Stonepeak, an infrastructure investment firm with approximately USD72 billion in assets under management. The transaction, approved at a shareholders’ meeting on February 10, is expected to close in the first half of 2025, pending regulatory approvals and customary closing conditions.
Under the terms of the deal, ATSG shareholders will receive USD22.50 per share in cash, a proposal that was initially put forward three months ago. Once the merger is completed, ATSG will become a privately held subsidiary of Stonepeak, and its shares will be delisted from the NASDAQ stock market, with deregistration under the Securities Exchange Act. The merger agreement involves the consolidation of ATSG with Stonepeak Nile MergerCo, a subsidiary of Stonepeak Nile Parent LLC, thereby streamlining ATSG’s operations under the umbrella of Stonepeak’s expansive portfolio.
ATSG is widely recognized in the aviation industry for its expertise as a freighter lessor. Its fleet, which includes Boeing 767s, Airbus A321s, and soon-to-be-converted A330 freighters, plays a crucial role in the global air cargo market. The company also owns several subsidiary airlines, including cargo carriers ABX Air and ATI – Air Transport International, as well as passenger charter operator Omni Air International. These airlines are certified under the US FAA Part 121, providing a range of ACMI (Aircraft, Crew, Maintenance, and Insurance) and charter services to meet diverse market demands.
Beyond its core operations in aircraft leasing and charter services, ATSG also manages a suite of specialized aviation services. These include Global Solutions, Airborne Maintenance and Engineering Services (which features Pemco World Air Services), Cargo Aircraft Management, and LGSTX Services. Together, these subsidiaries enable ATSG to offer end-to-end solutions in the aviation sector, from fleet management and technical services to comprehensive maintenance programs.
The merger with Stonepeak represents a strategic milestone for ATSG as it looks to unlock further value and expand its global footprint. Stonepeak’s deep expertise in infrastructure investments is expected to provide new opportunities for growth and operational efficiency across ATSG’s diverse portfolio. For ATSG, the cash offer of USD22.50 per share not only delivers immediate value to shareholders but also paves the way for a reinvigorated, privately held business model that can focus on long-term investments and strategic initiatives.
Industry analysts view the merger as a positive development for ATSG, enabling the company to capitalize on emerging market trends in both cargo and passenger charter sectors while strengthening its position in the competitive global aviation market. The combination of Stonepeak’s financial strength and ATSG’s operational expertise is anticipated to create synergies that drive innovation and improve service delivery across its networks.
As the merger process unfolds over the coming months, stakeholders will be watching closely to see how this transformative deal positions ATSG for future success in an industry that is rapidly evolving in response to changing global demand patterns. With the deal expected to close in early 2025, the future looks promising for ATSG as it embarks on this new chapter under Stonepeak’s ownership.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com