Atlas Air to be acquired by Apollo, others for $5.2bn

Atlas Air shareholders to receive $102.50/share, 57% premium to 30-day avg.

Atlas Air to be acquired by Apollo, others for $5.2bn

Nasdaq-listed Atlas Air Worldwide entered into a definitive agreement to be acquired by an investor group led by funds managed by affiliates of Apollo together with investment affiliates of J.F. Lehman & Company and Hill City Capital in an all-cash transaction with an enterprise valuation of approximately $5.2 billion.

"Atlas Air Worldwide shareholders will receive $102.50 per share in cash, representing a 57 percent premium to the 30-day volume-weighted average trading price of common stock as of July 29, 20221," says a statement from Atlas Air. "Upon completion of the transaction, Atlas Air Worldwide will become a privately held company and shares of Atlas Air Worldwide common stock will no longer be listed on the Nasdaq stock exchange. Atlas Air Worldwide will continue operating under the Atlas Air Worldwide name, be led by John Dietrich and the current executive team and maintain its global presence."

Duncan McNabb, Chairman, Atlas Air Worldwide, says: "We believe this transaction will deliver immediate and certain value to Atlas Air Worldwide shareholders at a substantial premium, and we are pleased to reach this agreement with the Consortium. The Board's decision to unanimously approve this transaction follows a careful evaluation and thoughtful review of value creation opportunities for shareholders. We believe this transaction is the right next step to maximise value for our shareholders and the best path forward to accelerate the Company's ability to execute its strategic plan and achieve its long-term growth objectives."

John Dietrich, President and Chief Executive Officer, Atlas Air Worldwide, adds: "Over our 30-year history, Atlas Air Worldwide has grown to become a global leader in airfreight, delivering high-quality services to our diverse roster of customers around the world. Following the closing of the sale to the Consortium, we will seek to leverage their resources, relationships and industry expertise to build on our strong financial and operational performance. Their investment in our company demonstrates their confidence in our people and our culture as we serve the growing needs of the global supply chain."

"Atlas Air Worldwide is a market leader that continues to set higher standards for excellence within the airfreight industry," says Apollo Partners Antoine Munfakh and Jason Scheir and J.F. Lehman & Company Partner Alex Harman on behalf of the Consortium. "With the strong market demand and long-term secular tailwinds for global air cargo services, Atlas is poised to capitalise on many opportunities for continued growth as a fund portfolio company of Apollo, J.F. Lehman and Hill City. We look forward to leveraging our resources, capital and experience in the sector to support the talented Atlas team, alongside our partners in this exciting next phase."

The transaction is expected to close in the fourth quarter 2022 or first quarter 2023, subject to customary closing conditions, the statement said.

Atlas Air Worldwide is the parent company of Atlas Air and Titan Aviation Holdings and it is the majority shareholder of Polar Air Cargo Worldwide.

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