As widely anticipated, a group of investors led by New York-based private equity firm Apollo Global Management will acquire Atlas Air Worldwide Holdings for approximately $2.9 billion, the two companies said in a statement.

The consortium, which also includes subsidiaries of New York-based private equity investor JF Lehman & Co and Boston-based hedge fund Hill City Capital, agreed to pay $102.50 per share in cash, or 35% more than the company’s price before the deal. was announced and around 55% above its 30-day average price. With items including debt, the enterprise value of the deal is approximately $5.2 billion.

The transaction is expected to close in Q4 2022 or Q1 2023 and is subject to Atlas shareholder approval. Upon completion, Atlas Air Worldwide will become a private company and its shares will no longer be listed on the Nasdaq stock exchange. It will continue to operate under the same name and will still be led by President and CEO John Dietrich and the current management team, the statement said.

Committed financing in support of the transaction was provided by Goldman Sachs, Barclays, Apollo Capital Management, Mizuho and Credit Agricole.

Atlas Air Worldwide Holdings is the parent company of Atlas Air (5Y, New York JFK) and cargo-focused lessor Titan Aviation Holdings and is also the majority shareholder of Polar Air Cargo (PO, New York JFK). The investment in Atlas expands Apollo’s aviation portfolio, which also has stakes in Sun Country Airlines (SY, Minneapolis/St. Paul) and airport services provider Swissport. Atlas and Sun Country supply cargo planes to Amazon.com’s carrier Amazon Air. According to its website, other Atlas Air customers include Boeing, FedEx and MotoGP.

Figures from the International Air Transport Association show global air cargo demand fell 4.2% in the first half of 2022 compared to the same period a year earlier, but was still 2.2% higher % at pre-Covid levels. Risks to investors in the market include soaring fuel prices and staff shortages.

In a separate statement, Atlas Air Worldwide Holdings announced its financial results for the second quarter ended June 30. . Dietrich commented: “During the first half of the year, global air cargo volumes exceeded pre-pandemic levels, while capacity remains constrained, particularly on key long-haul cargo trade routes. .”