ATSG subsidiary to acquire PEMCO

Air Transport Services Group, Inc. (NASDAQ: ATSG) subsidiary, Airborne Maintenance and Engineering Services, Inc. (AMES), has acquired PEMCO World Air Services, Inc., a privately held provider of outsourced heavy maintenance, repair and overhaul (MRO) aircraft services and passenger-to-freighter aircraft conversions, the company said.

The company did not assume any PEMCO debt in connection with the acquisition.

This acquisition will allow for a number of strategic benefits through combining operational strengths, expanded capabilities and cost savings related to shared services between the companies. The services of the combined AMES/PEMCO businesses will be marketed worldwide to customers as part of a comprehensive set of ATSG solutions, as well as to the ATSG affiliates.

Services will be offered from multiple locations, including Wilmington and Tampa for heavy maintenance and modifications, and Tampa, Central America and Asia for passenger-to-freighter conversions. Additional service offerings of aircraft-on-ground field teams, line and turnaround maintenance, component repair and overhaul, engineering repair and design, and extensive manufacturing and kitting capabilities, will be extended from various locations.

Based on ATSG´s current estimates and outlook, the PEMCO acquisition is expected to be accretive to ATSG´s earnings starting in 2017.

Advisers to PEMCO included Canaccord Genuity Inc. as financial adviser and Morgan, Lewis & Bockius LLP as legal adviser. Advisers to ATSG included Vorys, Sater, Seymour & Pease LLP as legal adviser.

AMES, a wholly owned subsidiary of ATSG, is a one-stop aircraft maintenance, repair, and overhaul (MRO) provider operating out of Wilmington, OH, with additional line maintenance operations in Cincinnati, OH, and Miami, FL. The company provides heavy maintenance, line maintenance, material sales and service, component repair and overhaul, and engineering services to aircraft operators.

Tampa, Florida-based PEMCO provides services ranging from light repairs to full heavy maintenance for its MRO customers.

ATSG is a provider of aircraft leasing and air cargo transportation and related services to domestic and foreign air carriers and other companies that outsource their air cargo lift requirements. Through its principal subsidiaries, the company provides aircraft leasing, air cargo lift, aircraft maintenance services and airport ground services.