ATSG Acquired by Stonepeak for $3.1 Billion
Deal News | Nov 04, 2024 | Stonepeak
Air Transport Services Group, Inc. (ATSG), a leader in medium widebody freighter aircraft leasing, is set to be acquired by Stonepeak, a premier alternative investment firm, in a transaction valued at $3.1 billion. The agreement, unanimously approved by ATSG's board, offers a 29.3% premium on ATSG's closing share price as of November 1, 2024. Post-transaction, ATSG will revert to private ownership, ceasing trade on NASDAQ. Stonepeak's investment aligns with ATSG's Lease+Plus strategy, aiming to strengthen its lease and operational services in air cargo. ATSG's existing infrastructure supports sectors like U.S. Department of Defense transport, indicating a crucial role in global e-commerce growth. Financially backed by committed equity and debt financing, the deal includes a 'go-shop' provision, allowing ATSG to consider superior proposals. ATSG's next significant disclosure will be its Q3 2024 results, further detailing the company's immediate financial health.
Sectors
- Aviation and Aerospace
- Private Equity
- Logistics and Transportation
Geography
- United States – The acquisition involves U.S.-based companies ATSG and Stonepeak, and ATSG's services heavily cater to U.S.-based clients, including the Department of Defense.
Industry
- Aviation and Aerospace – Air Transport Services Group (ATSG) operates in the Aviation and Aerospace sector, focusing on aircraft leasing and air transport operations, critical for the industry's infrastructure.
- Private Equity – Stonepeak, a leading alternative investment firm, represents the Private Equity industry, known for acquiring and managing investment portfolios.
- Logistics and Transportation – ATSG's involvement in transporting goods and providing passenger services to sectors like the U.S. Department of Defense links it to Logistics and Transportation.
Financials
- $3.1 Billion – Enterprise valuation of ATSG in the acquisition deal.
- $22.50 Per Share – The price per share that ATSG shareholders will receive.
- 29.3% – Premium over ATSG's closing share price as of November 1, 2024.
- 45.5% – Premium over ATSG's volume-weighted average price (VWAP) over the prior ninety trading days.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Air Transport Services Group, Inc. (ATSG) | Target Company | Company | ATSG is a global leader in medium widebody freighter aircraft leasing and air transport operations. |
| Stonepeak | Bidding Company | Company | Stonepeak is a leading alternative investment firm specializing in infrastructure and real assets. |
| Goldman Sachs & Co. LLC | Financial Advisor | Company | Advisor to ATSG for the transaction. |
| Davis Polk & Wardwell LLP | Legal Advisor | Company | Provides legal counsel to ATSG. |
| Vorys, Sater, Seymour & Pease LLP | Legal Advisor | Company | Provides legal counsel to ATSG. |
| Evercore | Financial Advisor | Company | Advisor to Stonepeak for the transaction. |
| Simpson Thacher & Bartlett LLP | Legal Advisor | Company | Provides legal counsel to Stonepeak. |
| Hogan Lovells US LLP | Legal Advisor | Company | Provides legal counsel to Stonepeak. |