Atlas Air Worldwide Holdings Inc. announced that it will be acquired by a group of investors led by Apollo, along with JF Lehman & company and Hill City Capital.
Atlas Air said the all-cash transaction is valued at approximately $5.2 billion.
Atlas Air Worldwide was founded in 1992 and is currently owns the largest fleet of Boeing 747swith 38 in its fleet both in service and in storage.
Atlas Air Worldwide’s companies — Atlas Air, Polar Air Cargo Worldwide, Titan Aviation — operate and serve customers around the world, including to any city that can be served by the Boeing 747. In 2020, it operated more than 68,000 flights.
The deal comes amid a boom in demand for air cargo fueled by the pandemic, which has seen many operators switch to cargo and passenger planes. In addition, many companies are increasingly turning to air freight to get goods to customers quickly due to disruptions in global supply chains and increased demand for e-commerce.
“With strong market demand and a long-term successful tailwind for global air travel, Atlas is poised to benefit from many opportunities for continued growth as a portfolio company of the Apollo Fund, JF Lehman and Hill City,” commented Apollo.
This was reported by a representative of Atlas Bloomberg that the equity of the deal is about $3.2 billion, while the enterprise value of the deal, including debt, is about $5.2 billion.
Under the transaction agreement, Atlas Air shareholders will receive $102.50 per share in cash, representing a 57% premium to the 30-day volume-weighted average trading price of Atlas Air Worldwide as of July 29, 2022.
Upon completion of the transaction, Atlas Air Worldwide will become a privately held company and Atlas Air Worldwide’s common stock will no longer be listed on the Nasdaq Stock Exchange.
The transaction is expected to close in the fourth quarter of 2022 or the first quarter of 2023.
“Over our 30-year history, Atlas Air Worldwide has grown to become a global leader in air travel, providing high-quality service to our diverse customer list around the world,” said John Dietrich, president and chief executive officer of Atlas Air Worldwide. in a statement dated August 4, 2022.
Dietrich added: “After closing the sale to the consortium, we will look to leverage their resources, relationships and industry expertise to build on our strong financial and operating performance. Their investment in our company demonstrates their confidence in our people and our culture as we serve the growing needs of the global supply chain.”
https://www.aerotime.aero/articles/31822-atlas-air-worldwide-acquired-apollo-5-billion Atlas Air will be acquired by an Apollo-led group for $5 billion