NEW York-based investment firm stonepeak is in advanced talks to acquire Air Transport Services Group (ATSG), a provider of aircraft leasing and cargo transportation services, for about US$3.1 billion including debt, people familiar with the matter said.
The firm is expected to pay $22.50 per share for the company, representing a premium of nearly 30 per cent to its closing price last Friday, the sources said, requesting anonymity as the discussions are confidential.
If the talks conclude successfully, the deal could be announced as early as Monday, the sources added.
Stonepeak and ATSG did not immediately respond to requests for comment, according to Reuters.
With factory-to-home retailers like Temu, Shein and others driving up online shopping traffic and brick-and-mortar retailers offering consumers faster delivery times, moving cargo by air has become a vital part of logistics for many corporations.
This has boosted the prospects of freight operators like ATSG, making them attractive takeover targets.
Wilmington, Ohio-based ATSG was founded in 1980 and traces its roots to an express freight operator known as Airborne Freight Corporation. In 2003, it acquired Airborne's ground operations, excluding the airline and aircraft maintenance operations that eventually became ATSG.
The company counts online retailer Amazon as one of its key customers. It's a leading lessor of mid-sized freighters, with a fleet of 134 aircraft that includes Boeing 767 and Airbus A321 jets.
It also provides air cargo transportation and aircraft maintenance services to domestic and foreign airlines and currently has 5,300 employees, according to its website.
For the quarter ended June 30, ATSG reported an 8 per cent decline in revenue to $488 million and swung to a pretax loss of $7 million, as some key customers leased fewer aircraft.
The company said it expects a pickup in demand in the coming quarters as macroeconomic conditions improve.
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The firm is expected to pay $22.50 per share for the company, representing a premium of nearly 30 per cent to its closing price last Friday, the sources said, requesting anonymity as the discussions are confidential.
If the talks conclude successfully, the deal could be announced as early as Monday, the sources added.
Stonepeak and ATSG did not immediately respond to requests for comment, according to Reuters.
With factory-to-home retailers like Temu, Shein and others driving up online shopping traffic and brick-and-mortar retailers offering consumers faster delivery times, moving cargo by air has become a vital part of logistics for many corporations.
This has boosted the prospects of freight operators like ATSG, making them attractive takeover targets.
Wilmington, Ohio-based ATSG was founded in 1980 and traces its roots to an express freight operator known as Airborne Freight Corporation. In 2003, it acquired Airborne's ground operations, excluding the airline and aircraft maintenance operations that eventually became ATSG.
The company counts online retailer Amazon as one of its key customers. It's a leading lessor of mid-sized freighters, with a fleet of 134 aircraft that includes Boeing 767 and Airbus A321 jets.
It also provides air cargo transportation and aircraft maintenance services to domestic and foreign airlines and currently has 5,300 employees, according to its website.
For the quarter ended June 30, ATSG reported an 8 per cent decline in revenue to $488 million and swung to a pretax loss of $7 million, as some key customers leased fewer aircraft.
The company said it expects a pickup in demand in the coming quarters as macroeconomic conditions improve.
SeaNews Turkey