Milbank, Tweed, Hadley & McCloy LLP is advising worldwide air cargo service provider Southern Air Holdings Inc. in its acquisition by Atlas Worldwide Holdings, Inc., global provider of outsourced aircraft and aviation operating services, as detailed in the press release issued by Southern Air. The transaction, valued at approximately $110 million, is expected to close in the next few months.
The transaction includes Worldwide Air Logistics Group, Inc. and its two operating subsidiaries, Southern Air, Inc. and Florida West International Airways, Inc. Southern Air will continue to operate in Florence, Kentucky and Florida West will continue to operate in Miami, upon closing of the transaction as subsidiaries of Atlas Air Worldwide.
Southern Air Holdings Inc. is located at the Cincinnati/Northern Kentucky International Airport (CVG), which is also a hub for DHL Express, the leading global brand in the logistics industry and Southern Air’s primary customer. Southern currently operates five Boeing 777-200Fs and five 737-400Fs under agreements with DHL Express. Florida West, located in Miami, Florida, operates scheduled and charter services under three Boeing 767-300F aircraft for LAN Cargo.
Atlas Air Worldwide is the parent company of Atlas Air, Inc., Titan Aviation Holdings, Inc. and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Through Atlas and Polar, Atlas Air Worldwide operates the world’s largest fleet of Boeing 747 freighter aircraft.
New York-based Corporate partner Roland Hlawaty led the Milbank team on the deal with associates Andrew Everett, Daniel Valenza and Lorin Kolcun. The Milbank Tax team was led by Russell Kestenbaum and special counsel Max Goodman and the Executive Compensation team was led by partner Joel Krasnow and associate James Beebe.
