Shrusti

MP Guru
ABX Air, Inc., formerly Airborne Express, is a cargo airline headquartered at Wilmington Air Park (formerly Airborne Airpark) in unincorporated Clinton County, Ohio, United States, near the City of Wilmington.[1] ABX Air operates scheduled, ad hoc charter and ACMI freight services. It also provides specialist training, maintenance and engineering services, and part sales. ABX Air is owned by Air Transport Services Group (NASDAQ: ATSG).

ABX Air's main customer is DHL, and the vast majority of the freight it carries is for that company. Most of ABX Air's aircraft are painted with DHL's yellow and red livery.

ABX also does cargo flights on behalf of Air Jamaica between Miami and the two Jamaican cities of Montego Bay (Donald Sangster International Airport) and Kingston (Norman Manley International Airport). One of their Boeing 767-200s routinely handles the flights, replacing the Douglas DC-8 types that flew previously. The aircraft fly with an Air Jamaica callsign of "Jamaica".


The airline was established in 1980 when Airborne Freight acquired Midwest Air Charter. It started operations on 17 April 1980. Airborne Express, as the airline was initially named, was a wholly-owned subsidiary of Airborne Freight of Seattle.[2] ABX became a public company on 16 August 2003 as part of the merger of DHL and Airborne, in which DHL kept Airborne's ground operations and spun off its air operations as ABX. ABX Air's common shares were traded on the NASDAQ National Market under the ticker symbol ABXA. In early 2007, ABX Air entered an ACMI agreement with All Nippon Airways to begin flying freight within Asia. The contract utilized two Boeing 767-200SF aircraft.[3] In March 2007, the airline had 7,600 employees.[2]

On 2 November 2007, CEO Joe Hete and the ABX Air board of directors announced that the company had entered into an agreement to acquire Cargo Holdings International, the parent company of Air Transport International (ATI) and Capital Cargo International Airlines for a cost of $350 million. The transaction was finalized on 31 December 2007[4], and ABX Air was reorganized as a subsidiary of a holding company, later named Air Transport Services Group (ATSG).[5]

On November 10, 2008, ABX Air's largest customer, DHL, announced a plan to exit the United States domestic market.[6] Previous plans by DHL had been to keep its U.S. operations by contracting them out to United Parcel Service.[7] On 30 March 2010, ABX Air's parent company, ATSG, entered into new long-term agreements with DHL, under which ABX Air would continue providing airlift for the U.S. portion of DHL’s international network.

In its first-ever acquisition of a company, ABX Air Inc. will purchase Cargo Holdings International Inc. (CHI), a privately held provider of air cargo services based in Orlando, Fla.

The transaction is for about $350 million.

CHI’s roster of more than 30 customers includes BAX/Schenker, the U.S. government, DHL, the U.S. Postal Service and UPS.

CHI conducts its operations through four subsidiary companies, which include two airlines: Air Transport International (ATI) which operates DC8s and Capital Cargo International Airlines (CCIA) which operates 727s.

There are approximately 600 total employees in the CHI companies. They will not relocate to Wilmington as a result of the transaction.

CHI operates 32 aircraft, and also owns five Boeing 767-200s and one 757-200 all undergoing freighter conversion.

CHI expects to report revenues of $300 million for the year ending Dec. 31, 2007.

CHI will become a wholly owned subsidiary of ABX Holdings Inc. CHI will maintain its management team and keep its name.

“We want to continue to let them operate their business unit as they operate it today. They’ve been very successful at what they do and I subscribe to a philosophy, if it’s not broke, don’t fix it,” said Joe Hete, ABX’s president and CEO.

Collectively, ABX Air and CHI have a total fleet of more than 135 aircraft and will operate the largest fleet of 767 freighter aircraft in the world.

“The acquisition will create one of the world’s leading diversified providers of integrated air cargo services,” said Hete.

Hete added, “Cargo Holdings International has an attractive fleet profile, long-term relationships with its high-quality customer base, an exceptional on-time delivery and safety record, significant cash flow and an experienced management team.”

Peter Fox, founder and president of CHI, said, “Our companies share a similar culture and common goals, most notably a relentless focus on delivering the highest possible level of service to our customers and an enthusiasm for the growth opportunities we see ahead. I look forward to working with Joe Hete and his team as we build a unique blend of nimble, aggressive global air cargo and service businesses with the capabilities that leading air shippers want, but few other companies can provide.”

Collectively, ABX Air and CHI will operate the world’s largest fleet of Boeing 767-200 freighter aircraft with 48 of them, of which 39 are in service and the remainder are undergoing conversion to freighters.

“Boeing 767s are especially well suited for many domestic and international ACMI [Aircraft, Crew, Maintenance, Insurance] applications,” Hete said.

“They [Boeing 767s] offer significant advantages compared with most other freighters available today, including payload flexibility, transcontinental range, two-person crews, twin-engine efficiency, high reliability and Category III low-visibility operating capabilities,” said Hete.

“The 767 will help us expand our share of many of the faster-growth markets we serve now, such as the Americas, Asia and Europe, and opens new markets where our reliability, flexibility and competitive cost structure offer a distinct advantage,” Hete added.

Like ABX Air, the majority of CHI’s aircraft operate under contracts to provide the aircraft, crew, maintenance and insurance.

Through CHI’s four subsidiaries, Cargo Aircraft Management Inc., LGSTX Group Inc., CCIA and ATI, it also provides aircraft leasing, airport ground services, fuel management, specialized transportation management and air charter brokerage services.

Hete said, “We believe CHI’s relationships with its two largest customers, BAX/Schenker and the U.S. government, complement our existing relationships with DHL and other customers, and will establish a more balanced and sustainable source of revenue and earnings going forward.”

The ABX president was asked whether the purchase has any ramifications for a possible hostile-takeover attempt against ABX Air by ASTAR Air Cargo.

“Certainly we did not do this transaction with any consideration per se for ASTAR. It’s not a defensive move; it’s an offensive move. We wanted to grow the business and we thought this is a great opportunity,” said Hete.

Hete said the first conversation with CHI President Peter Fox was in April 2007.

Did ABX consult with its largest customer, DHL Express, regarding the transaction? “We don’t believe there should be. I mean, as we see it, ultimately it should be beneficial to them as well,” replied Hete.

He anticipates the transaction will have no immediate direct impact on residents of Clinton County.

“I think the impact overall is it facilitates our ability to survive and thrive as an organization as a whole. And when a company thrives, that’s beneficial to everybody throughout the organization and since the majority of our employees are here in Wilmington, obviously that’s a positive impact,” Hete said.

An ABX Air media release on Friday described CHI as “a solidly profitable company.”

CHI is a dozen years old. It acquired ATI in February 2006.

Pilots at both ATI and CCIA are unionized. ATI pilots belong to the International Brotherhood of Teamsters, while CCIA pilots are part of the Air Line Pilots Assocation International.

By the closing of the transaction, ABX Air will create a new holding company structure, with ABX Air Inc. becoming a wholly owned subsidiary of ABX Holdings Inc.

The final equity purchase price of the transaction is anticipated to be $260 million, which will include an adjustment based upon the net assets on CHI’s balance sheet at closing, the media release said.

The transaction will be financed with the issuance of 4 million shares of ABX Holdings common stock and cash from a new $345 million senior secured credit facility led by SunTrust Financial and Regions Bank, a portion of which will be used to refinance CHI’s existing $100 million credit facility.

Based on ABX Air’s current estimates and outlook, the CHI acquisition is expected to be accretive to ABX Holdings Inc.’s earnings starting in 2008, according to a media release.

Hete said, “These companies are an excellent strategic fit and together will be one of the world’s best-performing, most diversified, customer-focused and cost-competitive providers of global air freight services.”

ABX Air has obtained a commitment from certain shareholders of CHI to provide subordinated financing in the event it should become necessary to retire ABX Air’s $92.3 million note payable to DHL.

The acquisition is subject to customary regulatory approvals and is expected to close before the end of 2007.

Stifel, Nicolaus & Company acted as financial advisor to ABX Air in the transaction

In its first-ever acquisition of a company, ABX Air Inc. will purchase Cargo Holdings International Inc. (CHI), a privately held provider of air cargo services based in Orlando, Fla.

The transaction is for about $350 million.

CHI’s roster of more than 30 customers includes BAX/Schenker, the U.S. government, DHL, the U.S. Postal Service and UPS.

CHI conducts its operations through four subsidiary companies, which include two airlines: Air Transport International (ATI) which operates DC8s and Capital Cargo International Airlines (CCIA) which operates 727s.

There are approximately 600 total employees in the CHI companies. They will not relocate to Wilmington as a result of the transaction.

CHI operates 32 aircraft, and also owns five Boeing 767-200s and one 757-200 all undergoing freighter conversion.

CHI expects to report revenues of $300 million for the year ending Dec. 31, 2007.

CHI will become a wholly owned subsidiary of ABX Holdings Inc. CHI will maintain its management team and keep its name.

“We want to continue to let them operate their business unit as they operate it today. They’ve been very successful at what they do and I subscribe to a philosophy, if it’s not broke, don’t fix it,” said Joe Hete, ABX’s president and CEO.

Collectively, ABX Air and CHI have a total fleet of more than 135 aircraft and will operate the largest fleet of 767 freighter aircraft in the world.

“The acquisition will create one of the world’s leading diversified providers of integrated air cargo services,” said Hete.

Hete added, “Cargo Holdings International has an attractive fleet profile, long-term relationships with its high-quality customer base, an exceptional on-time delivery and safety record, significant cash flow and an experienced management team.”

Peter Fox, founder and president of CHI, said, “Our companies share a similar culture and common goals, most notably a relentless focus on delivering the highest possible level of service to our customers and an enthusiasm for the growth opportunities we see ahead. I look forward to working with Joe Hete and his team as we build a unique blend of nimble, aggressive global air cargo and service businesses with the capabilities that leading air shippers want, but few other companies can provide.”

Collectively, ABX Air and CHI will operate the world’s largest fleet of Boeing 767-200 freighter aircraft with 48 of them, of which 39 are in service and the remainder are undergoing conversion to freighters.

“Boeing 767s are especially well suited for many domestic and international ACMI [Aircraft, Crew, Maintenance, Insurance] applications,” Hete said.

“They [Boeing 767s] offer significant advantages compared with most other freighters available today, including payload flexibility, transcontinental range, two-person crews, twin-engine efficiency, high reliability and Category III low-visibility operating capabilities,” said Hete.

“The 767 will help us expand our share of many of the faster-growth markets we serve now, such as the Americas, Asia and Europe, and opens new markets where our reliability, flexibility and competitive cost structure offer a distinct advantage,” Hete added.

Like ABX Air, the majority of CHI’s aircraft operate under contracts to provide the aircraft, crew, maintenance and insurance.

Through CHI’s four subsidiaries, Cargo Aircraft Management Inc., LGSTX Group Inc., CCIA and ATI, it also provides aircraft leasing, airport ground services, fuel management, specialized transportation management and air charter brokerage services.

Hete said, “We believe CHI’s relationships with its two largest customers, BAX/Schenker and the U.S. government, complement our existing relationships with DHL and other customers, and will establish a more balanced and sustainable source of revenue and earnings going forward.”

The ABX president was asked whether the purchase has any ramifications for a possible hostile-takeover attempt against ABX Air by ASTAR Air Cargo.

“Certainly we did not do this transaction with any consideration per se for ASTAR. It’s not a defensive move; it’s an offensive move. We wanted to grow the business and we thought this is a great opportunity,” said Hete.

Hete said the first conversation with CHI President Peter Fox was in April 2007.

Did ABX consult with its largest customer, DHL Express, regarding the transaction? “We don’t believe there should be. I mean, as we see it, ultimately it should be beneficial to them as well,” replied Hete.

He anticipates the transaction will have no immediate direct impact on residents of Clinton County.

“I think the impact overall is it facilitates our ability to survive and thrive as an organization as a whole. And when a company thrives, that’s beneficial to everybody throughout the organization and since the majority of our employees are here in Wilmington, obviously that’s a positive impact,” Hete said.

An ABX Air media release on Friday described CHI as “a solidly profitable company.”

CHI is a dozen years old. It acquired ATI in February 2006.

Pilots at both ATI and CCIA are unionized. ATI pilots belong to the International Brotherhood of Teamsters, while CCIA pilots are part of the Air Line Pilots Assocation International.

By the closing of the transaction, ABX Air will create a new holding company structure, with ABX Air Inc. becoming a wholly owned subsidiary of ABX Holdings Inc.

The final equity purchase price of the transaction is anticipated to be $260 million, which will include an adjustment based upon the net assets on CHI’s balance sheet at closing, the media release said.

The transaction will be financed with the issuance of 4 million shares of ABX Holdings common stock and cash from a new $345 million senior secured credit facility led by SunTrust Financial and Regions Bank, a portion of which will be used to refinance CHI’s existing $100 million credit facility.

Based on ABX Air’s current estimates and outlook, the CHI acquisition is expected to be accretive to ABX Holdings Inc.’s earnings starting in 2008, according to a media release.

Hete said, “These companies are an excellent strategic fit and together will be one of the world’s best-performing, most diversified, customer-focused and cost-competitive providers of global air freight services.”

ABX Air has obtained a commitment from certain shareholders of CHI to provide subordinated financing in the event it should become necessary to retire ABX Air’s $92.3 million note payable to DHL.

The acquisition is subject to customary regulatory approvals and is expected to close before the end of 2007.

Stifel, Nicolaus & Company acted as financial advisor to ABX Air in the transaction
 
ABX Air, Inc., formerly Airborne Express, is a cargo airline headquartered at Wilmington Air Park (formerly Airborne Airpark) in unincorporated Clinton County, Ohio, United States, near the City of Wilmington.[1] ABX Air operates scheduled, ad hoc charter and ACMI freight services. It also provides specialist training, maintenance and engineering services, and part sales. ABX Air is owned by Air Transport Services Group (NASDAQ: ATSG).

ABX Air's main customer is DHL, and the vast majority of the freight it carries is for that company. Most of ABX Air's aircraft are painted with DHL's yellow and red livery.

ABX also does cargo flights on behalf of Air Jamaica between Miami and the two Jamaican cities of Montego Bay (Donald Sangster International Airport) and Kingston (Norman Manley International Airport). One of their Boeing 767-200s routinely handles the flights, replacing the Douglas DC-8 types that flew previously. The aircraft fly with an Air Jamaica callsign of "Jamaica".


The airline was established in 1980 when Airborne Freight acquired Midwest Air Charter. It started operations on 17 April 1980. Airborne Express, as the airline was initially named, was a wholly-owned subsidiary of Airborne Freight of Seattle.[2] ABX became a public company on 16 August 2003 as part of the merger of DHL and Airborne, in which DHL kept Airborne's ground operations and spun off its air operations as ABX. ABX Air's common shares were traded on the NASDAQ National Market under the ticker symbol ABXA. In early 2007, ABX Air entered an ACMI agreement with All Nippon Airways to begin flying freight within Asia. The contract utilized two Boeing 767-200SF aircraft.[3] In March 2007, the airline had 7,600 employees.[2]

On 2 November 2007, CEO Joe Hete and the ABX Air board of directors announced that the company had entered into an agreement to acquire Cargo Holdings International, the parent company of Air Transport International (ATI) and Capital Cargo International Airlines for a cost of $350 million. The transaction was finalized on 31 December 2007[4], and ABX Air was reorganized as a subsidiary of a holding company, later named Air Transport Services Group (ATSG).[5]

On November 10, 2008, ABX Air's largest customer, DHL, announced a plan to exit the United States domestic market.[6] Previous plans by DHL had been to keep its U.S. operations by contracting them out to United Parcel Service.[7] On 30 March 2010, ABX Air's parent company, ATSG, entered into new long-term agreements with DHL, under which ABX Air would continue providing airlift for the U.S. portion of DHL’s international network.

In its first-ever acquisition of a company, ABX Air Inc. will purchase Cargo Holdings International Inc. (CHI), a privately held provider of air cargo services based in Orlando, Fla.

The transaction is for about $350 million.

CHI’s roster of more than 30 customers includes BAX/Schenker, the U.S. government, DHL, the U.S. Postal Service and UPS.

CHI conducts its operations through four subsidiary companies, which include two airlines: Air Transport International (ATI) which operates DC8s and Capital Cargo International Airlines (CCIA) which operates 727s.

There are approximately 600 total employees in the CHI companies. They will not relocate to Wilmington as a result of the transaction.

CHI operates 32 aircraft, and also owns five Boeing 767-200s and one 757-200 all undergoing freighter conversion.

CHI expects to report revenues of $300 million for the year ending Dec. 31, 2007.

CHI will become a wholly owned subsidiary of ABX Holdings Inc. CHI will maintain its management team and keep its name.

“We want to continue to let them operate their business unit as they operate it today. They’ve been very successful at what they do and I subscribe to a philosophy, if it’s not broke, don’t fix it,” said Joe Hete, ABX’s president and CEO.

Collectively, ABX Air and CHI have a total fleet of more than 135 aircraft and will operate the largest fleet of 767 freighter aircraft in the world.

“The acquisition will create one of the world’s leading diversified providers of integrated air cargo services,” said Hete.

Hete added, “Cargo Holdings International has an attractive fleet profile, long-term relationships with its high-quality customer base, an exceptional on-time delivery and safety record, significant cash flow and an experienced management team.”

Peter Fox, founder and president of CHI, said, “Our companies share a similar culture and common goals, most notably a relentless focus on delivering the highest possible level of service to our customers and an enthusiasm for the growth opportunities we see ahead. I look forward to working with Joe Hete and his team as we build a unique blend of nimble, aggressive global air cargo and service businesses with the capabilities that leading air shippers want, but few other companies can provide.”

Collectively, ABX Air and CHI will operate the world’s largest fleet of Boeing 767-200 freighter aircraft with 48 of them, of which 39 are in service and the remainder are undergoing conversion to freighters.

“Boeing 767s are especially well suited for many domestic and international ACMI [Aircraft, Crew, Maintenance, Insurance] applications,” Hete said.

“They [Boeing 767s] offer significant advantages compared with most other freighters available today, including payload flexibility, transcontinental range, two-person crews, twin-engine efficiency, high reliability and Category III low-visibility operating capabilities,” said Hete.

“The 767 will help us expand our share of many of the faster-growth markets we serve now, such as the Americas, Asia and Europe, and opens new markets where our reliability, flexibility and competitive cost structure offer a distinct advantage,” Hete added.

Like ABX Air, the majority of CHI’s aircraft operate under contracts to provide the aircraft, crew, maintenance and insurance.

Through CHI’s four subsidiaries, Cargo Aircraft Management Inc., LGSTX Group Inc., CCIA and ATI, it also provides aircraft leasing, airport ground services, fuel management, specialized transportation management and air charter brokerage services.

Hete said, “We believe CHI’s relationships with its two largest customers, BAX/Schenker and the U.S. government, complement our existing relationships with DHL and other customers, and will establish a more balanced and sustainable source of revenue and earnings going forward.”

The ABX president was asked whether the purchase has any ramifications for a possible hostile-takeover attempt against ABX Air by ASTAR Air Cargo.

“Certainly we did not do this transaction with any consideration per se for ASTAR. It’s not a defensive move; it’s an offensive move. We wanted to grow the business and we thought this is a great opportunity,” said Hete.

Hete said the first conversation with CHI President Peter Fox was in April 2007.

Did ABX consult with its largest customer, DHL Express, regarding the transaction? “We don’t believe there should be. I mean, as we see it, ultimately it should be beneficial to them as well,” replied Hete.

He anticipates the transaction will have no immediate direct impact on residents of Clinton County.

“I think the impact overall is it facilitates our ability to survive and thrive as an organization as a whole. And when a company thrives, that’s beneficial to everybody throughout the organization and since the majority of our employees are here in Wilmington, obviously that’s a positive impact,” Hete said.

An ABX Air media release on Friday described CHI as “a solidly profitable company.”

CHI is a dozen years old. It acquired ATI in February 2006.

Pilots at both ATI and CCIA are unionized. ATI pilots belong to the International Brotherhood of Teamsters, while CCIA pilots are part of the Air Line Pilots Assocation International.

By the closing of the transaction, ABX Air will create a new holding company structure, with ABX Air Inc. becoming a wholly owned subsidiary of ABX Holdings Inc.

The final equity purchase price of the transaction is anticipated to be $260 million, which will include an adjustment based upon the net assets on CHI’s balance sheet at closing, the media release said.

The transaction will be financed with the issuance of 4 million shares of ABX Holdings common stock and cash from a new $345 million senior secured credit facility led by SunTrust Financial and Regions Bank, a portion of which will be used to refinance CHI’s existing $100 million credit facility.

Based on ABX Air’s current estimates and outlook, the CHI acquisition is expected to be accretive to ABX Holdings Inc.’s earnings starting in 2008, according to a media release.

Hete said, “These companies are an excellent strategic fit and together will be one of the world’s best-performing, most diversified, customer-focused and cost-competitive providers of global air freight services.”

ABX Air has obtained a commitment from certain shareholders of CHI to provide subordinated financing in the event it should become necessary to retire ABX Air’s $92.3 million note payable to DHL.

The acquisition is subject to customary regulatory approvals and is expected to close before the end of 2007.

Stifel, Nicolaus & Company acted as financial advisor to ABX Air in the transaction

In its first-ever acquisition of a company, ABX Air Inc. will purchase Cargo Holdings International Inc. (CHI), a privately held provider of air cargo services based in Orlando, Fla.

The transaction is for about $350 million.

CHI’s roster of more than 30 customers includes BAX/Schenker, the U.S. government, DHL, the U.S. Postal Service and UPS.

CHI conducts its operations through four subsidiary companies, which include two airlines: Air Transport International (ATI) which operates DC8s and Capital Cargo International Airlines (CCIA) which operates 727s.

There are approximately 600 total employees in the CHI companies. They will not relocate to Wilmington as a result of the transaction.

CHI operates 32 aircraft, and also owns five Boeing 767-200s and one 757-200 all undergoing freighter conversion.

CHI expects to report revenues of $300 million for the year ending Dec. 31, 2007.

CHI will become a wholly owned subsidiary of ABX Holdings Inc. CHI will maintain its management team and keep its name.

“We want to continue to let them operate their business unit as they operate it today. They’ve been very successful at what they do and I subscribe to a philosophy, if it’s not broke, don’t fix it,” said Joe Hete, ABX’s president and CEO.

Collectively, ABX Air and CHI have a total fleet of more than 135 aircraft and will operate the largest fleet of 767 freighter aircraft in the world.

“The acquisition will create one of the world’s leading diversified providers of integrated air cargo services,” said Hete.

Hete added, “Cargo Holdings International has an attractive fleet profile, long-term relationships with its high-quality customer base, an exceptional on-time delivery and safety record, significant cash flow and an experienced management team.”

Peter Fox, founder and president of CHI, said, “Our companies share a similar culture and common goals, most notably a relentless focus on delivering the highest possible level of service to our customers and an enthusiasm for the growth opportunities we see ahead. I look forward to working with Joe Hete and his team as we build a unique blend of nimble, aggressive global air cargo and service businesses with the capabilities that leading air shippers want, but few other companies can provide.”

Collectively, ABX Air and CHI will operate the world’s largest fleet of Boeing 767-200 freighter aircraft with 48 of them, of which 39 are in service and the remainder are undergoing conversion to freighters.

“Boeing 767s are especially well suited for many domestic and international ACMI [Aircraft, Crew, Maintenance, Insurance] applications,” Hete said.

“They [Boeing 767s] offer significant advantages compared with most other freighters available today, including payload flexibility, transcontinental range, two-person crews, twin-engine efficiency, high reliability and Category III low-visibility operating capabilities,” said Hete.

“The 767 will help us expand our share of many of the faster-growth markets we serve now, such as the Americas, Asia and Europe, and opens new markets where our reliability, flexibility and competitive cost structure offer a distinct advantage,” Hete added.

Like ABX Air, the majority of CHI’s aircraft operate under contracts to provide the aircraft, crew, maintenance and insurance.

Through CHI’s four subsidiaries, Cargo Aircraft Management Inc., LGSTX Group Inc., CCIA and ATI, it also provides aircraft leasing, airport ground services, fuel management, specialized transportation management and air charter brokerage services.

Hete said, “We believe CHI’s relationships with its two largest customers, BAX/Schenker and the U.S. government, complement our existing relationships with DHL and other customers, and will establish a more balanced and sustainable source of revenue and earnings going forward.”

The ABX president was asked whether the purchase has any ramifications for a possible hostile-takeover attempt against ABX Air by ASTAR Air Cargo.

“Certainly we did not do this transaction with any consideration per se for ASTAR. It’s not a defensive move; it’s an offensive move. We wanted to grow the business and we thought this is a great opportunity,” said Hete.

Hete said the first conversation with CHI President Peter Fox was in April 2007.

Did ABX consult with its largest customer, DHL Express, regarding the transaction? “We don’t believe there should be. I mean, as we see it, ultimately it should be beneficial to them as well,” replied Hete.

He anticipates the transaction will have no immediate direct impact on residents of Clinton County.

“I think the impact overall is it facilitates our ability to survive and thrive as an organization as a whole. And when a company thrives, that’s beneficial to everybody throughout the organization and since the majority of our employees are here in Wilmington, obviously that’s a positive impact,” Hete said.

An ABX Air media release on Friday described CHI as “a solidly profitable company.”

CHI is a dozen years old. It acquired ATI in February 2006.

Pilots at both ATI and CCIA are unionized. ATI pilots belong to the International Brotherhood of Teamsters, while CCIA pilots are part of the Air Line Pilots Assocation International.

By the closing of the transaction, ABX Air will create a new holding company structure, with ABX Air Inc. becoming a wholly owned subsidiary of ABX Holdings Inc.

The final equity purchase price of the transaction is anticipated to be $260 million, which will include an adjustment based upon the net assets on CHI’s balance sheet at closing, the media release said.

The transaction will be financed with the issuance of 4 million shares of ABX Holdings common stock and cash from a new $345 million senior secured credit facility led by SunTrust Financial and Regions Bank, a portion of which will be used to refinance CHI’s existing $100 million credit facility.

Based on ABX Air’s current estimates and outlook, the CHI acquisition is expected to be accretive to ABX Holdings Inc.’s earnings starting in 2008, according to a media release.

Hete said, “These companies are an excellent strategic fit and together will be one of the world’s best-performing, most diversified, customer-focused and cost-competitive providers of global air freight services.”

ABX Air has obtained a commitment from certain shareholders of CHI to provide subordinated financing in the event it should become necessary to retire ABX Air’s $92.3 million note payable to DHL.

The acquisition is subject to customary regulatory approvals and is expected to close before the end of 2007.

Stifel, Nicolaus & Company acted as financial advisor to ABX Air in the transaction

Many many thanks shrusti for sharing Customer Relationship Management report on ABX Air and i am sure it would help many other people here. BTW, i am also sharing some useful information for sharing more related content to your thread.
 

Attachments

  • ABX Air.pdf
    305.2 KB · Views: 0
Top