Stonepeak invests in the air cargo sector
Investment firm Stonepeak has acquired air cargo company ATSG for US$3.1 billion, transforming it into a private company. The airline’s shares jumped 27% on the announcement. The deal is due to close in the first half of 2025.
Stonepeak will pay US$22.5 for each share of the company. Based on the latest trades, this value is more than 29% higher than the value of ATSG’s shares.
The American aviation company’s primary focus is the purchase of old passenger planes. The company also converts them into cargo planes for further leasing. According to the latest information, ATSG owns 114 aircraft, the majority of which are Boeing 767s.
It is worth noting that the acquisition took place despite the company’s declining revenues. In the second quarter of 2024, ATSG’s profit fell by 8%. This was a result of lower demand for leasing in the cargo sector.
Funds linked to Stonepeak will partially underpin the financing. The buyer will also assume ATSG’s debt obligations.
About Stonepeak
Stonepeak is an infrastructure and real estate investment company. It ranks sixth in the world in terms of funds raised over the last 5 years. Key stages in the company’s development:
1. In 2008, Blackstone created a new division focused exclusively on infrastructure projects.
2. Michael Dorrell and Trent Vichy led it.
3. Company became an independent firm in 2011.
4. The debut fund raised US$1.65 billion, with investors including the state of Washington and TIAA.
5. Landmark Partners raised an additional US$350 million in off-balance sheet funds in 2018.
6. Trent Vici left the firm in 2021 to start his own business.
7. In 2021, Stonepeak launched a new property investment business.
8. In 2023, Blue Owl Capital became a minority shareholder in Stonepeak. Its stake in the company was 13.5%, which it bought for US$2 billion. Overall, Stonepeak is valued at around US$15 billion.
The company’s major acquisitions include Cologix and Astound Broadband. In 2022, Stonepeak bought the Port of Geelong with Spirit Super for US$732 million. In the same period, the company, together with two funds, purchased the Cosmopolitan hotel complex in Las Vegas for US$6.5 billion.
Currently, Stonepeak is actively developing the direction of its real estate investments and continuing to expand its investments in infrastructure projects.
