Air Transport Services To Go Private In $3.1 Bln Deal With Stonepeak; Stock Climbs In Pre-market

(RTTNews) - Air Transport Services Group, Inc. (ATSG), a provider of medium widebody freighter aircraft leasing, air transport operations, and support services, announced Monday that it has entered into a definitive agreement to be acquired by alternative investment firm Stonepeak, in an all-cash transaction with an enterprise valuation of around $3.1 billion.

In pre-market activity on the Nasdaq, ATSG shares were gaining around 22.93 percent to trade at $21.39.

Under the deal terms, holders of ATSG's common shares will receive $22.50 per share in cash.

The purchase price represents a premium of around 29.3 percent over ATSG's closing share price on November 1, the last full trading day prior to the announcement.

The definitive deal was unanimously approved by ATSG's Board of Directors. The transaction is expected to close in the first half of 2025, subject to customary closing conditions, including approval of ATSG's shareholders and receipt of regulatory approvals. The deal is not subject to a financing condition.

Upon completion of the transaction, ATSG's shares will no longer trade on NASDAQ, and ATSG will become a private company.

The definitive agreement includes a "go-shop" period. Under the merger deal terms, ATSG may solicit proposals from third parties for a period of 35 days continuing through December 8, 2024, and in certain cases for a period of 50 days continuing through December 23, 2024.

Joe Hete, Executive Chairman of ATSG's Board of Directors, said, "The agreement with Stonepeak will deliver immediate and certain cash value to ATSG's shareholders at a substantial premium to recent market prices. With a history dating back to 1980, we are excited to reach this important milestone in our journey. Since going public in 2003, ATSG has diversified and expanded its portfolio of companies and services, becoming a global leader in midsize freighter leasing and flying, as well as a leading supplemental provider of passenger transport for the U.S. Department of Defense and other agencies."

Mike Berger, Chief Executive Officer of ATSG, added, "With Stonepeak's investment and extensive expertise in transportation and logistics and asset leasing, ATSG will be well positioned to further expand its global presence in the air cargo leasing market and enhance its service offerings to customers."

In the deal, Goldman Sachs & Co. LLC is acting as exclusive financial advisor to ATSG. Evercore is acting as financial advisor to Stonepeak.

As announced earlier, ATSG will release its financial results for the third quarter on November 8.