ABX Air to buy Cargo Holdings

Source: Supply Chain Digital

Date :11/2/2007 7:15:01 AM

Cargo airline ABX Air Inc. said Friday it has agreed to acquire privately held Cargo Holdings International Inc. for about $350 million.

ABX will create a new holding company structure, ABX Holdings Inc., which will incorporate ABX Air and Cargo Holdings as wholly owned subsidiaries.

The transaction will be financed with 4 million shares of ABX stock, as well as cash from a new $345 million senior secured credit facility.

ABX said the facility will also be used to refinance some of Cargo Holdings' debt.

Raising revenue

Cargo Holdings, based in Orlando, Florida which provides outsourced air cargo and brokerage services, is expected to report revenue of $300 million for 2007.

ABX expects the acquisition - expected to close by the end of 2007-to boost its earnings beginning next year.

The Wilmington, Ohio-based company had 2006 revenue of $1.26 billion.

November 2 2007