ATSG to acquire aircraft repair, conversion services firm

Air Transport Services Group subsidiary Airborne Maintenance and Engineering Services has purchased Tampa, Fla.-based PEMCO World Air Services for an undisclosed amount, the company said in a statement.    Air Transport Services Group, Inc. (ATSG) subsidiary Airborne Maintenance and Engineering Services, Inc. (AMES) has acquired PEMCO World Air Services, Inc., the company said in a statement.
   Based in Tampa, Fla., PEMCO is a privately held provider of outsourced heavy maintenance, repair and overhaul aircraft services and passenger-to-freighter aircraft conversions.
   Financial terms of the deal were not disclosed, but ATSG noted it did not assume any PEMCO debt in connection with the acquisition.
   According to ATSG, which agreed back in March 2016 to provide and operate 20 Boeing 767 freighters for Amazon Fulfillment Services, the acquisition will “allow for a number of strategic benefits through combining operational strengths, expanded capabilities and cost savings related to shared services between the companies.”
   The services of the combined AMES/PEMCO businesses will be offered from multiple locations, including Wilmington and Tampa, for heavy maintenance and modifications; and Tampa, Central America and Asia for passenger-to-freighter conversions. Additional service offerings will include aircraft-on-ground field teams, line and turnaround maintenance, component repair and overhaul, engineering repair and design, and extensive manufacturing and kitting capabilities, ATSG said.
   “Based on PEMCO’s existing domestic and international scale, this acquisition will expand access to maintenance service for customers of ATSG’s expanding fleet of Boeing 767 cargo aircraft,” ATSG President and CEO Joe Hete said of the deal.
   “It is consistent with our goal to diversify ATSG’s revenue and earnings, for an investment in the same price range as our planned and completed stakes in cargo airlines in China and Europe,” he added. “The combination of PEMCO’s conversion and MRO sales of both Airbus and Boeing products with AMES’ existing offerings will create a sustained, growth-oriented aircraft maintenance product and services portfolio.”
   Based on ATSG’s current estimates and outlook, the company expects the PEMCO acquisition to be accretive to earnings starting in 2017.
   Canaccord Genuity Inc. acted as financial adviser to PEMCO in the transaction; and Morgan, Lewis & Bockius LLP acted as legal adviser. Vorys, Sater, Seymour & Pease LLP acted as legal adviser for ATSG.