Stonepeak is set to acquire Air Transportation Services Group (ATSG.US) for $3.1bn, a nearly 30% premium
Stonepeak is in advanced talks to buy Air Transportation Services Group (ATSG.US) for about $3.1bn, including debt, according to people familiar with the matter. ATSG is an aircraft leasing and freight services provider.
Stonepeak is expected to buy ATSG for $22.50 a share, a nearly 30 per cent premium to the company’s closing price on Friday, the people said.
If the talks are successful, the deal could be announced as early as Monday, the people added.
As retailers such as Temu and Shein push online shopping traffic from factories to homes, and physical retailers offer faster delivery times to consumers, air freight has become a key component of many companies’ logistics. That has boosted the prospects of freight operators such as ATSG, making them attractive acquisition targets.
ATSG is a leading medium-sized cargo aircraft leasing company with 134 planes, including Boeing 767s and Airbus A321s. Amazon is one of its main customers.
According to its website, the company also provides air freight and aircraft maintenance services for domestic and international airlines, and currently employs 5,300 people.
ATSG’s revenue fell 8 per cent to $488m in the quarter ended June 30, as some of its major customers reduced the number of planes they leased. The company reported a pre-tax loss of $7m. It said it expected demand to rebound in the coming quarters as the macroeconomic environment improved.
ATSG is due to report its third-quarter results on Friday.
Stonepeak focuses mainly on infrastructure and real estate, and its website shows it manages about $70bn in assets.
Last year, Stonepeak agreed to buy container leasing company Textainer Group for $7.4bn on an enterprise value basis. Stonepeak is also an investor in Lineage, a cold storage operator whose shares began trading on the New York Stock Exchange after its July IPO.