Apollo-led group to take Atlas Air non-public for $3 billion

Aug 4 (Reuters) – Air-freight firm Atlas Air Worldwide Holdings Inc (AAWW.O) is being taken non-public for almost $3 billion by an investor group led by non-public fairness large Apollo World Administration Inc (APO.N).

The settlement introduced on Thursday gives $102.50 for every share of Atlas Air, a premium of 35% to the corporate’s closing worth on Friday earlier than media studies on the deal.

Atlas Air gives air leasing providers that can be utilized for transport perishables, heavy building gear or passengers. The corporate’s clients embrace Boeing Co (BA.N), FedEx Corp (FDX.N) and MotoGP, in line with its web site.

Prospects of airways have improved this 12 months because of pent-up demand for journey and the easing of COVID-19 curbs, however the business’s restoration faces dangers from surging gas costs and workers shortages in a good labor market.

In second-quarter outcomes reported on Thursday, Atlas Air’s revenue fell 18% as greater spending on gas and worker wages drove up bills by 26%.

The corporate’s shares had been barely greater in premarket buying and selling after rising almost 28% this week amid hypothesis on the deal, which provides Atlas an enterprise of $5.2 billion and likewise consists of associates of J.F. Lehman & Co and Hill Metropolis Capital.

Atlas mentioned it expects the buyout to shut within the fourth quarter of 2022 or the primary quarter 2023.

A drop in inventory valuations this 12 months has provided non-public fairness corporations a possibility to purchase firms on a budget. Such corporations had been the chief driver of worldwide dealmaking within the first half of the 12 months, at the same time as total M&A slowed as a result of hostile market circumstances. learn extra

Reporting by Niket Nishant in Bengaluru; Modifying by Aditya Soni

Our Requirements: The Thomson Reuters Belief Ideas.