U.S.-based investment firm Stonepeak announced its acquisition of Air Transport Services Group (ATSG), a major aircraft lessor, in a $3.1 billion all-cash deal. The acquisition is expected to close in the first half of 2025, pending regulatory approval. Stonepeak will take ATSG private, purchasing all outstanding shares at $22.50 each, which represents a 29% premium over ATSG\u2019s closing price on November 1, 2024.<\/p>\n
Founded in 1980 and publicly traded since 2003, ATSG has established itself as a key player in midsize freighter leasing and air transport services. Based in Wilmington, Ohio, ATSG owns a fleet of 134 aircraft, including Boeing 767s, Boeing 757s, and Airbus A321s. The company plans to expand this fleet soon with Airbus A330 converted freighters. Its customer base includes Amazon\u2019s Prime Air, DHL Express, and the U.S.<\/p>\n
Joe Hete, Executive Chairman of ATSG, highlighted the board\u2019s confidence in the Stonepeak acquisition, describing it as a “path forward” that maximizes shareholder value. Hete and other ATSG leaders expressed optimism that Stonepeak\u2019s expertise in asset leasing and logistics infrastructure would help ATSG strengthen its global presence in the air cargo leasing market.<\/p>\n
ATSG CEO Mike Berger echoed these sentiments, stressing that Stonepeak\u2019s investment will empower the company to expand its global reach and enhance its service offerings. Stonepeak\u2019s portfolio includes logistics assets like TRAC Intermodal and container leasing firm Textainer, positioning it to support ATSG\u2019s growth ambitions.<\/p>\n
The acquisition comes at a time of increasing demand for air cargo capacity, which is driven by a surge in e-commerce sales, especially from the Asian continent. Increasingly, online shopping has made e-commerce businesses book a lot of space in passenger flights, paying for even the entire plane at times.<\/p>\n
This has strained capacity, as airlines reallocate planes for leisure routes and retire aging freighters, while production slowdowns among aircraft manufacturers limit the supply of cargo planes. ATSG\u2019s midsize freighters, which fill a unique niche in the air cargo market, are increasingly valuable as companies seek to meet growing demand in global logistics.<\/p>\n
The deal also reflects Stonepeak\u2019s confidence in the resilient demand for midsize freighter aircraft, despite fluctuations in ATSG\u2019s recent operating performance. ATSG\u2019s hybrid business model, which combines leasing with transport services, has positioned it as a trusted partner in the industry.<\/p>\n
The deal aligns with a broader trend of private equity acquisitions in the air cargo sector. In 2023, a consortium led by Apollo Global Management acquired Atlas Air, another major U.S. cargo airline, in a $5.2 billion deal. Stonepeak, which manages $56 billion in assets, has expanded its logistics investments in recent years, with holdings in GeelongPort in Australia and temperature-controlled warehousing leader Lineage Logistics.<\/p>\n