Atlas Air Worldwide Holdings has entered into an agreement to acquire privately held Southern Air Holdings as part of a $110 million deal.
The company says the agreement with the provider of intercontinental and domestic air cargo services is subject to customary closing conditions and approval by the US Department of Transportation, and is expected to close in the next few months.
Southern Air is the parent company of Worldwide Air Logistics Group and its two operating subsidiaries, Southern Air, and Florida West International Airways.
Atlas Air Worldwide president and chief executive officer (CEO), William Flynn says: “We are very pleased to announce a strategically compelling, highly complementary and immediately accretive acquisition of Southern Air.
“And we are eager to capitalise on the substantial opportunities that the transaction will provide, especially (Boeing) 777 and 737 aircraft operations.
“The result will be a more diversified and profitable company offering access to the widest range of modern, efficient aircraft, together with a broader mix of services and a greater scale and global footprint that will drive significant value for our customers and shareholders.”
Southern Air Holdings CEO, Daniel McHugh says: “We very much look forward to joining the Atlas Air family of companies. We share the same commitment to providing superior customer service via our exceptional team of aviation professionals.
“And Southern Air will now have a strong and viable parent to enable us to continue to grow.”
Atlas says the acquisition has strategic and financial benefits through enhanced service offerings and customer relationships and provides immediate entry into 777 and 737 aircraft operating platforms, with potential for developing additional business with existing and new customers of both companies.
Southern Air’s main operating company currently flies five Boeing 777-200 Freighters and five 737-400Fs under flight services (crew, maintenance and insurance) agreements with DHL Express.
Atlas says the platforms provided by these aircraft will augment its ability to offer customers the broadest array of aircraft and operating services for domestic, regional and international applications.
Atlas anticipates the combination with Southern Air is anticipated will add approximately $100 million to its annual revenues and provide a solid foundation for additional growth.