ATSG arm AMES buys PEMCO World Air Services
Jan 4, 2017: Airborne Maintenance and Engineering Services (AMES), the subsidiary of Air Transport Services Group has acquired Tampa-based PEMCO World Air Services (PEMCO), which offers outsourced heavy maintenance, repair and overhaul (MRO) aircraft services and passenger-to-freighter aircraft conversions.
The services of the combined entity will be marketed worldwide to customers as part of a comprehensive set of ATSG solutions, as well as to the ATSG affiliates.
ATSG will offer services 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 CEO 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.