Shares of Air Transport Services Group ATSG gained 26.4% on Nov. 4, 2024, closing the trading session at $22. The uptick followed the news that ATSG will be acquired by Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets. The enterprise valuation of the all-cash transaction is $3.1 billion.

Under the terms of this definitive agreement, which was unanimously approved by the company’s board of directors, ATSG’s common shareholders will receive $22.50 per share in cash. The purchase price represents a premium of approximately 29.3% over ATSG’s closing share price on Nov. 1, 2024. Considering ATSG’s volume-weighted average price over the prior 90 trading days, the purchase price represents a 45.5% premium.

Upon completion of the transaction, expected in the first half of 2025, subject to customary closing conditions, ATSG will become a private company. The definitive agreement includes a “go-shop” period that allows ATSG to solicit proposals from third parties for a period of 35 days through Dec. 8, 2024, and in certain cases for a period of 50 days through Dec. 23, 2024.

Air Transport Services Group, Inc Price

Air Transport Services Group, Inc price | Air Transport Services Group, Inc Quote

ATSG also possesses the right to respond to unsolicited proposals that constitute or may result in a superior deal at any time prior to receipt of its shareholder approval. The company has the right to terminate the merger agreement with Stonepeak to enter into a superior proposal by fulfilling conditions including payment of a customary termination fee.

Zacks Rank & Other Stocks to Consider

ATSG currently carries a Zacks Rank #2 (Buy).

Investors interested in the Zacks Transportation sector may also consider stocks like Matson MATX and Expeditors International of Washington EXPD.

Matson currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Matson is a Honolulu, HI-based provider of ocean transportation and logistics services.  The cost-management actions taken by the company to drive its bottom line are impressive. Efforts to reward its shareholders are commendable as well.

Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has moved 15.5% north. The stock has gained 42.2% year to date.

Expeditors currently carries a Zacks Rank #2. This Seattle, WA-based freight forwarder’s efforts to reward its shareholders are commendable. EXPD’s liquidity position is encouraging, too.

EXPD has outshined the Zacks Consensus Estimate in only one of the past four quarters (missing the mark twice and reporting in-line earnings on the other occasion). Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has moved 0.6% north.