Atlas Air Worldwide (Atlas) announced that the investor group led by funds managed by affiliates of Apollo, together with investment affiliates of J.F. Lehman & Company (J.F. Lehman) and Hill City Capital (Hill City), has completed its previously announced acquisition of the company.
The global provider of outsourced aircraft and aviation operating services said it would continue to maintain its global presence, continue to operate under the Atlas Air Worldwide name and be led by John Dietrich, president and chief executive officer, as well as the company's current executive leadership team.
"Today marks the start of an exciting new chapter for Atlas, and we are eager to begin our partnership with Apollo, J.F. Lehman and Hill City," Dietrich said on March 17.
"With the support and resources of our investor partners, we are well-positioned to achieve our growth objectives while continuing to serve the increasingly complex global supply chain."
"I want to thank the entire Atlas team, whose customer focus and dedication made this milestone possible. I look forward to the opportunities this next phase provides for our company and our employees," he added.
US$5.2B acquisition
Atlas earlier said it 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 US$5.2 billion.
Upon closing 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.
Chip Frazier, chief investment officer at Hill City Capital — on behalf of the investor group Apollo Partners Antoine Munfakh and Jason Scheir, J.F. Lehman Partner Alex Harman — noted that Aflas is poised for further growth following the acquisition.
"We are thrilled to partner with the talented Atlas team and build on the company's strong foundation as a leader in the airfreight industry. We have long admired Atlas' reputation of providing high-quality service to its customers, as well as the financial and operational excellence the team has established."
"Atlas is poised for continued growth and expansion as it capitalizes on the long-term demand for global air cargo services," Frazier said.
The statement noted that pursuant to the terms of the transaction announced on August 4, 2022, the investor group acquired all of the outstanding shares of Atlas Air Worldwide stock.
Atlas Air Worldwide shareholders are entitled to receive US$102.50 in cash for each share of Atlas Air Worldwide (AAWW) common stock owned. As a result of the transaction completion, Atlas Air Worldwide's common stock no longer trades on the NASDAQ stock exchange.
For the transaction, Morgan Stanley & Co. LLC served as the exclusive financial advisor to Atlas. Cravath, Swaine & Moore LLP served as Atlas' legal advisor.
Meanwhile, Evercore acted as the lead financial advisor to the investor group. Barclays, Goldman Sachs, and Mizuho Bank served as financial advisors to the investor group, Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisors to Apollo and the investor group entity, and Jones Day provided legal advice to J.F. Lehman & Company and Hill City Capital.
