Unique-Stonepeak nears $3.1 billion deal for plane lessor ATSG, sources say By Reuters

By David French

NEW YORK (Reuters) – Stonepeak is in superior talks to build up Air Transport Firms (NASDAQ:) Group, a provider of aircraft leasing and cargo transportation suppliers, for about $3.1 billion along with debt, people conversant within the matter acknowledged on Sunday.

The New York-based funding company is predicted to pay $22.50 per share for the company, usually generally known as ATSG, representing a premium of just about 30% to its closing value on Friday, the sources acknowledged, requesting anonymity as a result of the discussions are confidential. 

If the talks conclude effectively, the deal may presumably be launched as early as Monday, the sources added. 

Stonepeak and ATSG didn’t immediately reply to requests for comment.

With factory-to-home retailers like Temu, Shein and others driving up on-line buying guests and brick-and-mortar retailers offering customers sooner provide events, shifting cargo by air has grow to be an necessary part of logistics for lots of firms. This has boosted the prospects of freight operators like ATSG, making them participating takeover targets. 

Based mostly in 1980, ATSG traces its roots to an categorical freight operator usually generally known as Airborne Freight Firm. In 2003, DHL acquired Airborne’s flooring operations, excluding the airline and aircraft repairs operations that lastly grew to grow to be ATSG. 

The Wilmington, Ohio-based agency, which counts on-line retailer Amazon (NASDAQ:) as one among its key shoppers, is a primary lessor of mid-sized freighters, with a fleet of 134 aircraft that options Boeing (NYSE:) 767 and Airbus A321 jets. 

It moreover provides air cargo transportation and aircraft repairs suppliers to house and abroad airways and presently has 5,300 workers, in line with its web page. 

For the quarter ended June 30, ATSG reported an 8% decline in revenue to $488 million and swung to a pretax lack of $7 million, as some key shoppers leased fewer aircraft. The company acknowledged it expects a pickup in demand inside the coming quarters as macroeconomic circumstances improve.

ATSG is scheduled to report its third-quarter earnings on Friday.

New York-based Stonepeak, which primarily focuses on the infrastructure and precise property industries, has about $70 billion of property beneath administration, in line with its web page.

Last yr, Stonepeak agreed to build up container lessor Textainer Group in a care for an enterprise value of $7.4 billion. Stonepeak could be an investor in chilly storage warehouse operator Lineage, whose shares started shopping for and promoting in New York following the company’s preliminary public offering in July.