By Ben Glickman

Air Transport Services Group, a supplier of airfreight transport to Amazon.com, agreed to be taken private in an all-cash deal with an enterprise value of around $3.1 billion.

The Wilmington, Ohio-based cargo airline said Monday that it had agreed to be acquired by investment firm Stonepeak for $22.50 a share. The company said the deal price represented a premium of about 29% over the stock's closing price as of Friday.

ATSG has a fleet of more than 100 aircraft, most of them freighters, that it charters for a range of airlines around the world, including DHL. It has been a major supplier of cargo aircraft to Amazon's network, and announced a deal earlier this year to provide 10 Boeing 767 freighters to the e-commerce giant with an option for 10 more.

The airline's profit fell sharply in the second quarter, to $7.4 million from $38 million in last year's June quarter, in part because of the impact of expiring leases on some older aircraft under contract to Amazon.

The sale to Stonepeak is expected to close in the first half of next year, subject to approval by Air Transport Services shareholders and regulatory approvals.

The all-cash deal has fully committed equity financing from funds affiliated with Stonepeak, Air Transport Services said.

The agreement includes a "go-shop" period, during which the company may solicit proposals and can terminate the merger if it receives a superior offer from another buyer.

Founded in 2011, Stonepeak managed some $70 billion in assets as of June and ranks among the older private investment firms dedicated to real assets, including renewable energy and infrastructure.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

November 04, 2024 09:40 ET (14:40 GMT)

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