ATSG to be acquired for $3.1bn

Investment firm Stonepeak is set to acquire US freighter lessor and operator Air Transport Services Group (ATSG) for $3.1bn.

The two businesses have entered into a definitive agreement, which has been unanimously approved by ATSG’s board of directors.

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

“This transaction reflects the tremendous value of our fleet of in-demand midsize freighter and passenger aircraft, and the strength of our talented teams across ATSG’s businesses,” said Mike Berger, chief executive of ATSG. “In Stonepeak, we have found a partner that recognizes the power of our Lease+Plus strategy to provide comprehensive aircraft leasing and operating solutions to our customers.

“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. We would like to thank our employees for helping us achieve this significant milestone and for their continued dedication as we prepare to enter this new chapter as a private company.”

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 definitive agreement includes a “go-shop” period. Under the terms of the merger agreement, 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.

In addition, ATSG may, at any time prior to receipt of shareholder approval, subject to the provisions of the merger agreement, respond to unsolicited proposals that constitute or would reasonably be expected to result in a superior proposal. 

ATSG saw both profits and revenues decline in the second quarter of the year as a result of returned freighter aircraft. However, the company said it expected improved results as the year progressed.

ATSG sees Q2 revenues and profits decline as 767Fs are returned