Connect with us

Hi, what are you looking for?

Stock

Exclusive-Stonepeak nears $3.1 billion deal for aircraft lessor ATSG, sources say

By David French

NEW YORK (Reuters) – Stonepeak is in advanced talks to acquire Air Transport Services (NASDAQ:ATSG) Group, a provider of aircraft leasing and cargo transportation services, for about $3.1 billion including debt, people familiar with the matter said on Sunday.

The New York-based investment firm is expected to pay $22.50 per share for the company, known as ATSG, representing a premium of nearly 30% to its closing price on Friday, the sources said, requesting anonymity as the discussions are confidential. 

If the talks conclude successfully, the deal could be announced as early as Monday, the sources added. 

Stonepeak and ATSG did not immediately respond to requests for comment.

With factory-to-home retailers like Temu, Shein and others driving up online shopping traffic and brick-and-mortar retailers offering consumers faster delivery times, moving cargo by air has become a vital part of logistics for many corporations. This has boosted the prospects of freight operators like ATSG, making them attractive takeover targets. 

Founded in 1980, ATSG traces its roots to an express freight operator known as Airborne Freight Corporation. In 2003, DHL acquired Airborne’s ground operations, excluding the airline and aircraft maintenance operations that eventually became ATSG. 

The Wilmington, Ohio-based company, which counts online retailer Amazon (NASDAQ:AMZN) as one of its key customers, is a leading lessor of mid-sized freighters, with a fleet of 134 aircraft that includes Boeing (NYSE:BA) 767 and Airbus A321 jets. 

It also provides air cargo transportation and aircraft maintenance services to domestic and foreign airlines and currently has 5,300 employees, according to its website. 

For the quarter ended June 30, ATSG reported an 8% decline in revenue to $488 million and swung to a pretax loss of $7 million, as some key customers leased fewer aircraft. The company said it expects a pickup in demand in the coming quarters as macroeconomic conditions improve.

ATSG is scheduled to report its third-quarter earnings on Friday.

New York-based Stonepeak, which primarily focuses on the infrastructure and real estate industries, has about $70 billion of assets under management, according to its website.

Last year, Stonepeak agreed to acquire container lessor Textainer Group in a deal with an enterprise value of $7.4 billion. Stonepeak is also an investor in cold storage warehouse operator Lineage, whose shares started trading in New York following the company’s initial public offering in July. 

This post appeared first on investing.com






    You May Also Like

    Editor's Pick

    Sen. JD Vance (R-Ohio) and Minnesota Gov. Tim Walz (D) will face off Tuesday night at a CBS News vice-presidential debate in New York....

    Latest News

    A North Korean defector who escaped to the South more than a decade ago was detained after attempting to cross back into North Korea...

    Economy

    A U.N. human rights group confirmed Hamas’ leader in Lebanon, who was recently killed by Israeli strikes, was their employee.  Fateh Sherif was killed...

    Investing

    Astron (ASX:ATR) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) have completed the establishment of a joint venture to advance the Australia-based Donald rare earths and mineral sands...

    Disclaimer: balanceandcharge.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 balanceandcharge.com