Stonepeak in Talks to Acquire ATSG Group

By David French

NEW YORK (Reuters) – Stonepeak is in advanced talks to acquire Air Transport Services (NASDAQ:ATSG) Group, a provider of aircraft leasing and cargo transportation services, for about $3.1 billion, including debt, according to sources familiar with the matter.

The New York-based investment firm is expected to pay $22.50 per share for ATSG, representing a nearly 30% premium to its closing price on Friday. The sources requested anonymity due to the confidential nature of the discussions.

If the negotiations conclude successfully, an announcement could be made as early as Monday. Stonepeak and ATSG did not respond immediately to requests for comment.

With the rise of factory-to-home retailers such as Temu and Shein driving online shopping traffic, and brick-and-mortar retailers offering faster delivery times, air cargo transportation has become crucial for many corporations. This increased demand has made freight operators like ATSG attractive acquisition targets.

Founded in 1980, ATSG originated as Airborne Freight Corporation. In 2003, DHL acquired Airborne’s ground operations, leaving behind the airline and maintenance sectors that became ATSG.

Headquartered in Wilmington, Ohio, ATSG, which counts Amazon (NASDAQ:AMZN) as a key customer, is a leading lessor of midsize freighters, with a fleet of 134 aircraft, including Boeing 767 and Airbus A321 jets. The company also provides air cargo transportation and aircraft maintenance services to both domestic and foreign airlines, employing around 5,300 people.

For the quarter ending June 30, ATSG reported a revenue decline of 8% to $488 million and a pretax loss of $7 million, as some key customers reduced aircraft leases. However, the company anticipates better demand in the upcoming quarters as macroeconomic conditions improve.

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

New York-based Stonepeak primarily focuses on infrastructure and real estate, managing about $70 billion in assets. Last year, it agreed to acquire container lessor Textainer Group for an enterprise value of $7.4 billion and invested in cold storage operator Lineage, which went public in July.