Air Transport Services Group to acquire Omni Air International for USD 845m

Ohio, US-based charter services provider Air Transport Services Group, Inc. (NASDAQ: ATSG) has agreed to acquire Nebraska, US-based airlift services provider Omni Air International LLC (Omni Air)for USD 845m, the company said.

The company did not assume any debt in connection with the acquisition. ATSG plans to fund the all-cash acquisition of Omni Air by expanding the term loan under its existing credit facility. The agreement is expected to close during the fourth quarter of 2018, subject to regulatory approvals.

The combination with Omni Air is anticipated to add over USD 430m in annualized revenues to ATSG.

The acquisition of Omni Air will further diversify ATSG´s customer base, add significant presence in the growing government passenger charter services market, add 13 aircraft to ATSG´s fleet, and broaden the ATSG carriers´ operating capabilities to include three Boeing 777-200 extended range aircraft.

Omni Air´s fleet, which includes seven 767-300ER, three 767-200ER and three 777-200ER aircraft, complements ATSG´s industry leading fleet of Boeing 737, 757, and 767 aircraft, and further solidifies its position as the world´s largest source of dedicated 767 cargo aircraft to selected air-express and other operators.

ATSG was advised by Goldman Sachs and Co LLC and Vorys Sater Seymour and Pease LLP, and its committed financing was arranged by SunTrust Robinson Humphrey. Omni Air was advised by BDT and company as financial adviser and Conner and Winters, LLP as legal adviser.

ATSG is a passenger ACMI and charter services provider with significant experience serving US and allied foreign governments and commercial customers.

Omni Air is a provider of passenger airlift services to the US Department of Defense via the Civil Reserve Air Fleet program, and a worldwide provider of full-service passenger charter and ACMI services.