The consortium is led by funds managed by affiliates of Apollo Global Management with investment affiliates of J.F. Lehman & Company and Hill City Capital.
Shareholders will receive $102.50 per share in cash, a 57% premium on the 30-day volume-weighted average trading price per share of Atlas Air Worldwide’s common stock as of 29 July.
When the transaction is completed, Atlas Air Worldwide will be a privately held company and its common stock no longer listed on the Nasdaq stock exchange.
It will continue operating under the Atlas Air Worldwide name and be led by John Dietrich and its current executive team.
Duncan McNabb, Chairman of the Atlas Air Worldwide Board of Directors, says, “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.”
The transaction is expected to close in the fourth quarter of 2022 or first quarter of 2023.
Atlas Air announced the news when it released its second quarter results, which saw net income falling from $107.1m to $88.3m.
Airline Operations were affected by increased pilot costs related to the new collective bargaining agreement, high premium pay for pilots operating in areas significantly affected by Covid-19, and higher overtime payments.
In the second quarter, Atlas Air took delivery of the first of 4 new Boeing 747-8Fs, with the remaining 3 are expected to arrive this year.
The airline is waiting for 4 Boeing 777-200LRFs to be delivered, with the first scheduled for arrival in the fourth quarter, and the other 3 next year.
Atlas Air is acquiring 5 of its existing Boeing 747-400Fs at their end of their leases; the first one was bought in March and the second one in May, with the others due to follow between August and December.