Publicly traded Atlas Air Worldwide has been acquired by an investor group led by Apollo, J.F. Lehman & Company, and Hill City Capital in an all-cash transaction with an enterprise valuation of $5.2 billion.
Atlas Air Worldwide (AAW) is a provider of outsourced aircraft and aviation operating services. The company’s wholly-owned subsidiaries include Atlas Air and Titan Aviation, and majority-owned Polar Air Cargo Worldwide.
In FY 2021, AAW reported revenues of just over $4.0 billion, an adjusted EBITDA of $1.1 billion, and free cash flow of $434 million. Based on an enterprise value of $5.2 billion, this equates to a 4.7x EBITDA valuation multiple and a 12.0x free cash flow valuation multiple.
AAW is led by CEO John Dietrich and is headquartered 25 miles northeast of New York City in Purchase, New York.
“Today marks the start of an exciting new chapter for Atlas, and we are eager to begin our partnership with Apollo, J.F. Lehman, and Hill City,” said Mr. Dietrich. “With the support and resources of our investor partners, we are well-positioned to achieve our growth objectives while continuing to serve the increasingly complex global supply chain. I want to thank the entire Atlas team, whose customer focus and dedication made this milestone possible. I look forward to the opportunities this next phase provides for our company and our employees.”
J.F. Lehman is a middle-market private equity firm focused primarily on the maritime, defense, and aerospace sectors. The firm was founded in 1992 by Dr. John Lehman, who served six years as Secretary of the United States Navy. J.F. Lehman is headquartered in New York City with an additional office in Washington DC.
New York City-headquartered Apollo (NYSE: APO) has more than $513 billion of assets under management and more than $83 billion dedicated to private equity. The firm has acquired more than 350 companies since its founding in 1990.
Hill City Capital, led by Chief Investment Officer Chip Frazier, is an investor in industrial, aerospace, and transportation companies. The firm was founded in 2019 by Herbert Frazier and is headquartered in Boston.
Morgan Stanley & Co. was the financial advisor to Atlas and Evercore was the financial advisor to Apollo, J.F. Lehman & Company, and Hill City.
© 2023 Private Equity Professional | March 24, 2023
