Stonepeak is reportedly in advanced discussions to acquire Air Transport Services Group (ATSG, Financial), a major player in aircraft leasing and cargo services, for approximately $3.1 billion, including debt. The proposed deal values ATSG at $22.50 per share, representing a nearly 30% premium over its recent closing price. If negotiations succeed, the transaction could be announced soon.
The booming e-commerce sector, driven by companies like Temu and Shein, has heightened demand for air cargo as retailers strive to expedite delivery times. This trend enhances the appeal of freight operators like ATSG, turning them into attractive acquisition targets.
ATSG is a leading midsize freighter leasing company with a fleet of 134 aircraft, including Boeing 767 and Airbus A321 models. Amazon, a key player in online retail, is one of ATSG's primary customers. The company also provides air cargo and aircraft maintenance services to various domestic and international airlines, employing 5,300 staff members.
In the quarter ending June 30, ATSG's revenue declined by 8% to $488 million due to reduced aircraft leasing by some major clients, resulting in a pre-tax loss of $7 million. However, the company anticipates a demand rebound in upcoming quarters as macroeconomic conditions improve. ATSG is scheduled to release its third-quarter earnings report soon.
Stonepeak, focusing on infrastructure and real estate sectors, manages approximately $70 billion in assets. Last year, it agreed to acquire container leasing company Textainer Group for $7.4 billion and is an investor in cold storage operator Lineage, which began trading on the NYSE following a recent IPO.
