US freighter lessor Air Transport Services Group (ATSG) plans to acquire passenger and charter services provider Omni Air International (Omni Air) for US$845 million.
The deal is expected to close in the fourth quarter, subject to regulatory approvals.
Oklahoma-based Omni Air was founded in 1993 and has a fleet of 13 passenger aircraft - a mix of Boeing 767 and Boeing 777 extended range aircraft - that serve US and allied foreign governments and commercial customers.
The merger with Omni Air is expected to generate $430 million in annualised revenues for ATSG, which is a provider of B767 converted freighter services to e-commerce giant Amazon, reported London's Air Cargo News.
ATSG chief executive Joe Hete said that the acquisition would allow the group to pursue new growth opportunities, 'including serving the expanding global e-commerce demand.'
Omni Air provides passenger airlift services to the US Department of Defence (DoD) via the Civil Reserve Air Fleet (CRAF) programme and is a worldwide provider of full-service passenger charter and aircraft, crew, maintenance an insurance (ACMI) services. .
ATSG said in a statement that the acquisition of Omni Air will 'further diversify ATSG's customer base, add significant presence in the growing government passenger charter services market.'
In addition, 'the transaction will further ATSG's strategic goals by adding growth opportunities with long-time and blue-chip customers and by positioning it to meet customers' global cargo needs with the longer-range B777 platform. The strong recurring cash flows from Omni Air's operations augment the sustainable cash flow generated by ATSG's dry leasing business model.'
Together with Omni Air's fleet, the ATSG companies will have a combined fleet of 90 aircraft in service by year-end.
Omni Air chief executive Jeff Crippen said: 'Combining Omni Air and ATSG's experience and skillsets unquestionably makes for a stronger company that can better serve its customers worldwide.'
Omni Air will operate as a separate subsidiary within ATSG under Mr Crippen's leadership from its existing Tulsa headquarters.
The deal is expected to close in the fourth quarter, subject to regulatory approvals.
Oklahoma-based Omni Air was founded in 1993 and has a fleet of 13 passenger aircraft - a mix of Boeing 767 and Boeing 777 extended range aircraft - that serve US and allied foreign governments and commercial customers.
The merger with Omni Air is expected to generate $430 million in annualised revenues for ATSG, which is a provider of B767 converted freighter services to e-commerce giant Amazon, reported London's Air Cargo News.
ATSG chief executive Joe Hete said that the acquisition would allow the group to pursue new growth opportunities, 'including serving the expanding global e-commerce demand.'
Omni Air provides passenger airlift services to the US Department of Defence (DoD) via the Civil Reserve Air Fleet (CRAF) programme and is a worldwide provider of full-service passenger charter and aircraft, crew, maintenance an insurance (ACMI) services. .
ATSG said in a statement that the acquisition of Omni Air will 'further diversify ATSG's customer base, add significant presence in the growing government passenger charter services market.'
In addition, 'the transaction will further ATSG's strategic goals by adding growth opportunities with long-time and blue-chip customers and by positioning it to meet customers' global cargo needs with the longer-range B777 platform. The strong recurring cash flows from Omni Air's operations augment the sustainable cash flow generated by ATSG's dry leasing business model.'
Together with Omni Air's fleet, the ATSG companies will have a combined fleet of 90 aircraft in service by year-end.
Omni Air chief executive Jeff Crippen said: 'Combining Omni Air and ATSG's experience and skillsets unquestionably makes for a stronger company that can better serve its customers worldwide.'
Omni Air will operate as a separate subsidiary within ATSG under Mr Crippen's leadership from its existing Tulsa headquarters.