ATSG subsidiary swoops on MRO and conversion firm Pemco
03 / 01 / 2017
Aircraft conversion firm Pemco has been bought by Airborne Maintenance and Engineering Services, a subsidiary of Air Transport Services Group (ATSG).
ATSG, which runs an air cargo operation for Amazon through its ABX subsidiary, said 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 marketed worldwide to customers as part of a comprehensive set of ATSG solutions, as well as to the ATSG affiliates," ATSG said.
Services 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 of aircraft-on-ground field teams, line and turnaround maintenance, component repair and overhaul, engineering repair and design, and extensive manufacturing and kitting capabilities, will be extended from various locations.
ATSG President and chief executive Joe Hete 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.
"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.
"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.”
Hete added that based on ATSG’s current estimates and outlook, the PEMCO acquisition is expected to be accretive to ATSG’s earnings starting in 2017.
Advisers to PEMCO included Canaccord Genuity Inc. as financial adviser and Morgan, Lewis & Bockius LLP as legal adviser. Advisers to ATSG included Vorys, Sater, Seymour & Pease LLP as legal adviser.
