Fine Air Announces Proposed Acquisition Of Arrow Air
MIAMI, FL (Feb. 11, 1999) -- Fine Air Services, Corp. today announced it has entered into definitive stock and asset purchase agreements with International Air Leases of PR, Inc., (“IALPR”) a corporation controlled by Anthony C. Tirri under which it is contemplated that Fine Air shall acquire, for $115 million in cash, certain aircraft, support shops and inventories as well as the operating assets and stock of Arrow Air, Inc., a major cargo airline based in Miami. Under the agreement, Fine Air Services Corp, the holding company for Fine Air Services, Inc., would acquire 13 DC-8s and four L-1011s, along with approximately130 jet engines (JT3-Ds, JT8-Ds and RB-211s).
Fine Air would also acquire extensive inventory of new and used airframe and engine parts, an engine overhaul shop, and a wheel and brake shop. Arrow is a subsidiary of International Air Leases, Inc., (“IAL”) which, together with its subsidiaries and affiliated companies, including Arrow, (collectively, “IAL Group”) was formerly owned by George Batchelor. Mr. Batchelor recently completed the sale of 100% of the capital stock of the IAL Group to Mr. Tirri and IALPR for an undisclosed amount. "This is a perfect match for Fine Air and a logical continuation of our business plan," said Barry H. Fine, president and chief executive officer of Fine Air, "We look forward to the successful completion of this important transaction.”
The sale by IALPR of the Arrow stock and assets to Fine Air is subject to compliance with the Hart Scott Rodino Antitrust Improvements Act. It is anticipated that HSR Act compliance will be obtained within 30 to 45 days following the filings by IALPR and Fine Air under the HSR Act. Arrow, based at Miami International Airport (“MIA”), is one of largest international air cargo operators whose business consists of both scheduled and ACMI services. For the twelve months ended September 30, 1998, Arrow had approximately $87.5 million in revenues.
Fine Air Services is a leading provider of air cargo services between the United States and South and Central America, and the Caribbean. Fine Air is one of the largest international cargo airlines at MIA which in 1998 transported approximately 174,000 tons of cargo in and out of MIA. For the twelve months ended December 31, 1998, Fine Air had approximately $116 million in revenues. Fine Air provides both scheduled and ACMI services and currently operates 14 DC-8 and one L-1011 aircraft. Fine Air has 1,200 customers worldwide, serving international and domestic freight forwarders, integrated carriers, passenger and cargo airlines, and the United States Postal Service.
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