Air Transport Services Group, Inc. (ATSG), a prominent provider of medium widebody freighter aircraft leasing, air transport operations, and related support services, announced on Monday a definitive agreement to be acquired by Stonepeak, an alternative investment firm. This all-cash transaction assigns ATSG an enterprise valuation of approximately $3.1 billion.
Ahead of market trading on the Nasdaq, ATSG shares saw a rise of about 22.93%, reaching a price of $21.39.
According to the agreement, ATSG common shareholders will receive $22.50 per share in cash. This purchase price signifies a premium of approximately 29.3% over the closing share price of ATSG on November 1, the last complete trading day prior to the announcement.
The ATSG Board of Directors unanimously approved this definitive agreement. The transaction is anticipated to conclude in the first half of 2025, pending customary closing conditions, including shareholder approval and regulatory consents. Notably, the agreement is free of any financing condition.
Post-transaction, ATSG's shares will no longer be listed on NASDAQ, transitioning the company to a private entity.
The agreement includes a "go-shop" period, permitting ATSG to solicit alternative proposals from third parties for 35 days until December 8, 2024, with certain circumstances extending this period to 50 days, until December 23, 2024.
Joe Hete, Executive Chairman of ATSG's Board of Directors, stated, "The agreement with Stonepeak provides ATSG's shareholders with immediate and assured cash value at a significant premium compared to recent market prices. Since our inception in 1980, reaching this milestone is a testament to our journey. Since becoming a public company in 2003, ATSG has diversified and broadened its portfolio, establishing itself as a global leader in midsize freighter leasing and operations, as well as a key supplemental passenger transport provider for the U.S. Department of Defense and other agencies."
Mike Berger, Chief Executive Officer of ATSG, commented, "Stonepeak's investment and their extensive expertise in transportation, logistics, and asset leasing position ATSG to further expand its global influence in the air cargo leasing market and enhance services for our clients."
In this transaction, Goldman Sachs & Co. LLC is serving as the exclusive financial advisor to ATSG, while Evercore is advising Stonepeak.
As previously disclosed, ATSG is set to release its third-quarter financial results on November 8.
