Private Entity Stonepeak to Acquire ATSG for $3.1B, Shares Up

Group 1 - Air Transport Services Group (ATSG) shares increased by 26.4% on November 4, 2024, closing at $22 following the announcement of its acquisition by Stonepeak for an enterprise valuation of $3.1 billion [1] - Under the acquisition agreement, ATSG's common shareholders will receive $22.50 per share in cash, representing a premium of approximately 29.3% over ATSG's closing share price on November 1, 2024, and a 45.5% premium based on the volume-weighted average price over the prior 90 trading days [2] - The transaction is expected to close in the first half of 2025, subject to customary closing conditions, and ATSG will become a private company post-transaction [3] Group 2 - ATSG has a "go-shop" period allowing it to solicit proposals from third parties for 35 days until December 8, 2024, with a possible extension to December 23, 2024 [3] - The company retains the right to respond to unsolicited proposals that may result in a superior deal before receiving shareholder approval and can terminate the merger agreement with Stonepeak under certain conditions [4] Group 3 - ATSG currently holds a Zacks Rank 2 (Buy), indicating a favorable outlook [5] - Other stocks in the Zacks Transportation sector include Matson, which has a Zacks Rank 1 (Strong Buy), and has seen a 42.2% gain year to date [6] - Expeditors International of Washington also holds a Zacks Rank 2 and has shown commendable efforts in rewarding shareholders, with a slight increase in the Zacks Consensus Estimate for 2024 earnings [7]