Atlas Air Worldwide was sold to a group of investors led by Apollo, one of the world’s largest private equity funds. Once the transaction is completed, Atlas will become a private company and its shares will no longer be listed on the Nasdaq stock market.
The deal also involves J.F. Lehman and Hill City Capital. The agreed price was around US$5.2 billion, which will be paid in cash. Under the terms of the deal, Atlas Air shareholders will receive $102.50 per share, a 57% premium over June’s share price.
The airline will continue to operate as Atlas Air and will continue with John Dietrich at the helm. Duncan McNabb, chairman of Atlas’ board of directors, said that “this transaction will immediately benefit our shareholders. It is an agreement that we are pleased to approve”. He concluded by stating that the board of directors “unanimously approved this transaction, which is the result of careful negotiations. We believe this is the best way to achieve our growth objectives”.
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Dietrich, president, and CEO of Atlas Air added to these statements that “throughout our 30-year history we have become a global leader in the air cargo industry. This sale will lead us to maximize resource utilization and consolidate our operation and finances.”
“Atlas Air is a market leader and operates to the highest standards within the air cargo industry,” a statement by Apollo Group and its associates said. “The strong global demand in the air cargo market provides us with great opportunities to capitalize on our growth. We will look to leverage those opportunities with our resources and industry expertise.”
The transaction is expected to close in the fourth quarter of 2022 or the first quarter of 2023, pending approval from Atlas Air shareholders and regulatory authorities.
