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• Deal offered $102.50 for each share of Atlas Air, a premium of 35% to Friday’s closing price
Air-freight company Atlas Air Worldwide Holdings Inc (NASDAQ: AAWW) on Thursday said it is being taken private by an investor group led by private equity giant Apollo Global Management Inc (NYSE: APO) for nearly $3 billion.
The deal offered $102.50 for each share of Atlas Air, a premium of 35% to the company’s closing price on Friday before media reports on the deal.
Atlas Air offers air leasing services that can be used for shipping perishables, heavy construction equipment or passengers, catering to high-profile corporate customers including Boeing, FedEx and MotoGP.
Although prospects for airlines have improved this year due to pent-up demand for travel and the easing of COVID-19 curbs, the industry’s recovery is currently facing risks from surging fuel prices and staff shortages.
Atlas Air on Thursday reported its second-quarter earnings and said its profit fell 18% due to higher spending on fuel, and employee wages drove up expenses by 26%.
The company’s shares were slightly higher in premarket trading after rising nearly 28% this week amid speculation on the deal, which gives Atlas an enterprise of $5.2 billion and includes affiliates of J.F. Lehman & Co and Hill City Capital.
Atlas said it expects the buyout to close in the fourth quarter of 2022 or the first quarter of the following year.
Picture Credit: Atlas Air
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