New York investment firm Stonepeak has signed an agreement to acquire US air cargo and aircraft leasing company Air Transport Services Group (ATSG) for $3.1 billion under a deal that would make ATSG a private company.

ATSG, now publicly traded on the NASDAQ exchange, disclosed the news on 4 November, saying it expects the all-cash acquisition will close in the first half of 2025.

The plan has been green lighted by ATSG’s board of directors but still requires shareholder approval. ATSG primarily operates freighter aircraft but also operates some passenger jets.

“This transaction reflects the tremendous value of our fleet of in-demand midsize freighter and passenger aircraft, and the strength of our talented teams across ATSG’s businesses,” says ATSG chief executive Mike Berger. “In Stonepeak, we have found a partner that recognises the power of our… strategy to provide comprehensive aircraft leasing and operating solutions to our customers.”

If finalised, the deal would see shareholders of Ohio-based ATSG receive cash of $22.50 per share and would make the company a private Stonepeak division.

“The agreement with Stonepeak will deliver immediate and certain cash value to ATSG’s shareholders at a substantial premium to recent market prices,” says ATSG board chair Joe Hete.

At the end of June, ATSG’s fleet included 134 passenger and cargo aircraft, among them three Airbus A321s, four 757s, 124 767s and three 777s, according to securities filings.

The company has two primarily divisions. Its ACMI – aircraft, crew, maintenance and insurance – business includes airlines ABX Air, Air Transport International and Omni Air International. Those carriers operate jets for customers, including Amazon.

ATSG’s Cargo Aircraft Management division acquires used narrowbody and widebody passengers jets, which it converts into freighters and leases to ATSG’s in-house airlines and to other carriers.

Stonepeak has $70 billion worth of assets under management and targets infrastructure investments, including projects related to shipping, data management, solar energy, natural gas, wind power, telecommunications and real estate, its website says.