Air Transport Services to acquire Omni Air International for $845M
Air Transport Services announced that it has agreed to acquire Omni Air International, a passenger ACMI and charter services provider with significant experience serving U.S. and allied foreign governments and commercial customers, for $845 million, subject to customary adjustments. The company did not assume any debt in connection with the acquisition. The combination with Omni Air is anticipated to add over $430 million in annualized revenues to ATSG. It also exceeds ATSG's investment hurdle and is expected to be immediately accretive to ATSG's adjusted earnings per share in 2019, with Adjusted EBITDA in line with ATSG's margin profile. After adjusting for the present value of tax benefits, which are estimated to be approximately $85 million, the implied acquisition multiple is 5.8x Omni Air's adjusted EBITDA for the trailing 12 months ending August 2018.