Stonepeak Acquires Air Transport Services Group in a $3.1 Billion Cash Deal

Air Transport Services Group, Inc. (ATSG) entered a merger agreement on November 4, 2024, to be taken private by investment firm Stonepeak in a deal valued at $3.1 billion.

Deal Structure:

As per the agreed terms, the holders of Air Transport Services Group’s common shares will receive $22.50 per share in cash, representing a 29.31% premium on the stock’s last close.

Company Profile:

Air Transport Services Group (ATSG) is a leading provider of aircraft leasing and air transportation solutions, specializing in cargo and passenger services for domestic and international carriers. With a diverse fleet that includes Boeing 767 and Airbus A321 freighters, ATSG also offers maintenance, ground support, and integrated logistics services through its various subsidiaries.

As of June 30, ATSG operated 114 freighter aircraft, predominantly consisting of Boeing 767 models. The company also manages freighters for Amazon’s air cargo network.

Stonepeak is a prominent alternative investment firm based in New York, managing about $70 billion in assets focused on infrastructure and real assets. The firm specializes in defensive investments across sectors such as communications, energy, transport, logistics, and real estate, aiming to deliver strong risk-adjusted returns and operational support for its portfolio companies.

Deal Details and Timeline:

Once the transaction is complete, expected in the first half of 2025, Air Transport’s shares will stop trading on Nasdaq, and the company will become privately held.

The takeover is backed by fully committed equity financing from Stonepeak-affiliated funds and fully committed debt financing.

The agreement has a “go-shop” period, under which ATSG can look for offers from other companies for 35 days, until December 8, 2024. If certain conditions are met, this period can be extended to 50 days, ending on December 23, 2024.

Stonepeak is paying 6.04 times EBITDA for Air Transport Services Group, Inc.

Deal Metrics:

For a deeper understanding of this significant M&A transaction, please follow the link below to the Deal Metrics page:

Deal Metrics for the acquisition of Air Transport Services Group, Inc. (ATSG) by Stonepeak

The Deal Metrics page for each merger or acquisition includes:

• A timeline showcasing the merger’s progress from announcement to completion or failure.
• Important events such as the expiration of the HSR period, regulatory approvals, shareholder votes, etc.
• Relevant news and SEC filings.
• A history of deal updates.
• And much more.

Disclaimer: The information provided in this article is for informational purposes only. Please conduct your own due diligence before buying or selling any securities mentioned in this article. We do not warrant the completeness or accuracy of the content or data provided in this article.

Editor’s Note: Baranjot Kaur contributed to this article