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Stonepeak nears $3.1 billion offer for aircraft lessor ATSG, sources say

Stonepeak remains in advanced speak to get Air Transportation Provider Group, a. provider of aircraft leasing and freight transport services,. for about $3.1 billion consisting of financial obligation, individuals knowledgeable about the. matter said on Sunday.

The New York-based investment company is expected to pay $22.50. per share for the business, referred to as ATSG, representing a premium. of nearly 30% to its closing cost on Friday, the sources said,. asking for anonymity as the conversations are personal.

If the talks conclude successfully, the offer might be. revealed as early as Monday, the sources added.

Stonepeak and ATSG did not right away react to demands. for comment.

With factory-to-home sellers like Temu, Shein and others. increasing online shopping traffic and brick-and-mortar. merchants offering customers quicker delivery times, moving cargo. by air has actually ended up being an important part of logistics for many. corporations. This has actually improved the prospects of freight. operators like ATSG, making them attractive takeover targets.

Established in 1980, ATSG traces its roots to an express freight. operator referred to as Airborne Freight Corporation. In 2003, DHL. obtained Airborne's ground operations, leaving out the. airline company and aircraft upkeep operations that eventually. ended up being ATSG.

The Wilmington, Ohio-based company, which counts online. seller Amazon as one of its essential consumers, is a. leading lessor of mid-sized trucks, with a fleet of 134. airplane that includes Boeing 767 and Plane A321 jets.

It also provides air freight transportation and airplane. maintenance services to domestic and foreign airline companies and. presently has 5,300 staff members, according to its site.

For the quarter ended June 30, ATSG reported an 8% decline. in profits to $488 million and swung to a pretax loss of $7. million, as some key clients leased fewer airplane. The. business said it expects a pickup in need in the coming. quarters as macroeconomic conditions improve.

ATSG is set up to report its third-quarter incomes on. Friday.

New York-based Stonepeak, which mainly concentrates on the. facilities and property markets, has about $70 billion. of possessions under management, according to its website.

Last year, Stonepeak agreed to get container lessor. Textainer Group in a handle an enterprise worth of $7.4. billion. Stonepeak is also a financier in cold storage warehouse. operator Lineage, whose shares began selling New. York following the company's going public in July.

(source: Reuters)