Investment firm Stonepeak has announced a landmark $3.1 billion deal to acquire Air Transport Services Group (ATSG), a leader in medium widebody freighter aircraft leasing and air transport operations. ATSG’s stock surged nearly 23% in pre-market trading on the news, reflecting a 29.3% premium over its previous closing price.

🔍 The Deal Details:

• Stonepeak will acquire ATSG for $22.50 per share in cash, with the deal including a comprehensive enterprise valuation of approximately $3.1 billion. The agreement has been unanimously approved by ATSG’s Board of Directors, and the transaction is expected to close in the first half of 2025, pending shareholder and regulatory approvals. ATSG will transition to a private company under Stonepeak, which plans to leverage ATSG’s strong market position in the air cargo sector and extensive partnerships, including Amazon’s air cargo network.
• This deal includes a “go-shop” period, allowing ATSG to explore other offers until mid-December, though Stonepeak’s deep expertise in asset leasing and logistics positions it as a strategic fit for ATSG’s continued growth.

Why is this Important? Stonepeak’s acquisition represents a significant shift in ATSG’s operational strategy, allowing it to leverage private ownership to expand its service offerings, particularly in the air cargo and leasing market. ATSG, which has diversified its services since going public in 2003, will gain access to Stonepeak’s resources and industry expertise, potentially accelerating its growth in the global air cargo market.

This acquisition highlights the ongoing interest in logistics and freight services within the private equity space, especially given the rise in global e-commerce and increased demand for air freight solutions. Stonepeak’s investment in ATSG underscores a long-term belief in the resilient and high-growth air logistics sector.

📈 What are your thoughts on this acquisition? Could Stonepeak’s investment reshape the air transport landscape? Let’s discuss below! 👇