AirNet Systems, Inc. (AMEX: ANS) has entered into a definitive merger agreement with an affiliate of Bayside Capital. The size of this deal is tiny when you compare it to the massive billion dollar club deals, but deals of this size also have a much better chance of being able to be financed and the size is such that banks won't have to come up with three million excuses not to fund.
AirNet Systems is a provider of specialized cargo airline and expedited transportation solutions for time-critical shipments like people that must get somewhere 10-minutes-ago, items like canceled checks and other key parcels. Here is their route structure that it operates in a spoke system if outside of that group. The website says that the company operated 130 aircraft, although that appears to be an old figure.
The company will be acquired for $2.81 per share, a transaction valued at $28.7 million. The offer represents a 94% premium to Friday's $1.45 closing price.
As already noted, the size here is tiny. But this niche is one that sees steady interest from public companies and private companies in what feels like a "regardless of the economy stance" over the last decade. What is even more interesting is that the size of a deal like this crosses over with venture capital players, even if it is already a developed company. VC's have funded many logistic and niche shipping companies over the last decade and there has been a major consolidation of the smaller players.
The board approved the transaction and awaits shareholder approval in a special meeting. The current management team will continue to manage the company upon completion of the transaction which is expected to close in the second quarter of 2008. AirNet shares are up over 80% today to $2.63, representing a $26.7 million market cap. The 52-week range is $1.38 to $3.69, so this might not be a 100% assurance that all shareholders will vote along with the deal.
Bayside Capital ventures into cargo & passenger transport
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