Air Transport Services Group has agreed to be acquired and taken private by investment firm Stonepeak in a transaction valued at $3.1 billion. The cash consideration of $22.50 per share represents a premium of about 29% over Air Transport's closing share price on Nov. 1. Shares of the aircraft lessor were up more than 26% intraday. "The agreement with Stonepeak will deliver immediate and certain cash value to Air Transport Services Group's shareholders at a substantial premium to recent market prices," Joe Hete, executive chairman of Air Transport's board, stated. This transaction highlights the value of the company's highly sought-after midsize freighter and passenger aircraft fleet, while positioning the firm to expand its global presence in the air cargo leasing market, as detailed by Air Transport Services Group Chief Executive Mike Berger. The acquisition is anticipated to close in the first half of 2025, pending approvals from regulators and Air Transport Services Group's shareholders.
At that point, the company will be delisted from the Nasdaq. "Air Transport Services Group's deep relationships with some of the world's largest e-commerce companies and integrators, combined with the scale and capacity of their fleet and relentless focus on safety and on-time performance, gives us confidence in the company's trajectory as a sector leader," remarked James Wyper, head of transportation and logistics at Stonepeak. In August, the firm reported second-quarter revenue of $488.4 million, lower than the $529.3 million reported a year earlier.
Additionally, adjusted per-share earnings declined to $0.19 from $0.57. The company is expected to report fiscal third-quarter results soon..