AIR freight company Atlas Air Worldwide has announced it will be acquired by a consortium of investors led by private equity firm Apollo.
Apollo, alongside investment firm affiliates J.F. Lehman & Company and Hill City Capital, plan to buy the aviation company in an all-cash transaction with an enterprise valuation of US$5.2 billion.
Once the transaction is completed, Atlas Air Worldwide will become a privately held company, no longer listed on the stock exchange.
According to a statement from the company, it will still operate under its current name and will continue to be led by its president and CEO John Dietrich along with the current executive team, maintaining its global presence.
Mr Dietrich said Atlas Air Worldwide had grown to become a global leader in air freight over its 30-year history.
“Following the closing of the sale to the consortium, we will seek to leverage their resources, relationships and industry expertise to build on our strong financial and operational performance,” Mr Dietrich said.
“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.”
Atlas Air Worldwide chair Duncan McNabb said the board’s decision to approve the transaction followed a careful evaluation and review of value creation opportunities for shareholders.
“We believe this transaction is the right next step to maximise value for our shareholders and the best path forward to accelerate the company’s ability to execute its strategic plan and achieve its long-term growth objectives,” Mr McNabb said.
And, on behalf of the consortium, Apollo partners Antoine Munfakh and Jason Scheir and J.F. Lehman & Company partner Alex Harman described Atlas Air Worldwide as a market leader setting high standards for excellence in the air freight industry.
“With the strong market demand and long-term secular tailwinds for global air cargo services, Atlas is poised to capitalise on many opportunities for continued growth as a fund portfolio company of Apollo, J.F. Lehman and Hill City,” they said.
“We look forward to leveraging our resources, capital and experience in the sector to support the talented Atlas team, alongside our partners in this exciting next phase.”
The transaction is expected to close in the fourth quarter 2022 or first quarter 2023, subject to customary closing conditions, including approval by Atlas Air Worldwide shareholders and receipt of regulatory approvals.
Atlas Air Worldwide is the parent company of cargo airline Atlas Air, as well as Titan Aviation. It is also the majority shareholder of Polar Air Cargo Worldwide.
