Atlas Air Worldwide Holdings Inc. (Nasdaq: AAWW) has agreed to buy air cargo provider Southern Air Holdings Inc. for $110 million in cash.
Southern Air, based in Florence Kentucky, provides air cargo and freight services. The company, which owns Worldwide Air Logistics and Florida West International Airways, has an operating agreement with DHL Express.
Atlas, located in Purchase, New York, is an outsourced aircraft company, which operates Polar Air Cargo and Titan Aviation Holdings. The acquisition of Southern Air will give Atlas additional services in operating 737 and 777 aircrafts.
“The result will be a more diversified and profitable company offering access to the widest range of modern, efficient aircraft, together with a broader mix of services and a greater scale and global footprint that will drive significant value for our customers and shareholders,” says Atlas Air CEO William Flynn. Atlas expects Southern Air to add about $100 million in annual revenue.
In other logistics deals, Ridgemont Equity Partners is acquiring Unishippers Global Logistics and XPO Logistics Inc. (NYSE: XPO) bought Con-way Inc. For more on logistics M&A, see E-Commerce Delivers Logistics Deals.