Stonepeak Acquires Air Transport Services Group for $3.1 Billion

Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, has acquired Air Transport Services Group, a global leader in medium wide-body freighter aircraft leasing, air transport operations, and support services, in an all-cash transaction with an enterprise valuation of approximately $3.1 billion.

Under the terms of the agreement, which was unanimously approved by ATSG’s Board of Directors, holders of ATSG’s common shares will receive $22.50 per share in cash. The purchase price represents a premium of approximately 29.3% over ATSG’s closing share price on 1 November 2024, the last full trading day prior to this announcement, and a 45.5% premium over ATSG’s volume-weighted average price (VWAP) over the prior ninety trading days.

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

ATS Group Executive Chairman Joe Hete said that the agreement with Stonepeak will deliver immediate and certain cash value to the company’s shareholders at a substantial premium to recent market prices.

Since going public in 2003, ATS Group 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 US Department of Defence and other agencies, he said.

James Wyper, Senior Managing Director and Head of Transportation & Logistics at Stonepeak, saids that ATS played a fundamental role in enabling the growth of e-commerce globally in a world that continues to shift away from brick-and-mortar shopping.

“It’s 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,” Wyper added.

Graham Brown, Managing Director at Stonepeak, said that they were looking forward to support the team at ATS to help take the business to the next level as a private company, and are excited about this addition to their North American infrastructure investment strategy.

The Nasdaq-listed ATSG expanded its longstanding partnership with ecommerce giant Amazon in may this year, adding 10 Boeing 767 freighters to its fleet under a contract that now extends operations to 2029, reinforcing an eight-year collaboration.

ATS Group was founded as ABX Air in 1980 and specialised in aircraft leasing, maintenance, and freight transportation for corporate clients, as well as passenger transportation.

Transaction Details

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 transaction has fully committed equity financing from funds affiliated with Stonepeak and fully committed debt financing. The transaction is not subject to a financing condition.