Arrow Air Holdings Sells to MatlinPatterson
Private equity firm had been eyeing aviation buys prior to making majority investment in international cargo shipper.
July 1, 2008
Arrow Air Holdings, a provider of cargo logistics services that runs Arrow Cargo, has sold an 85% share in the company to MatlinPatterson Global Opportunities Partners III, it was announced.
Terms of the deal were not disclosed.
Arrow Cargo is the largest air cargo carrier based at Miami International Airport and services the U.S., Central and South America and the Caribbean.
"Arrow is a strong competitor in the air cargo industry and a highly complementary addition to our portfolio," said Lap Chan, managing partner of MatlinPatterson. "We intend to modernize and expand Arrow's existing fleet by introducing B757's in late 2008 and A330's in early 2010 to facilitate the company's continued growth and improve the company's profitability."
Arrow Cargo currently has nine aircraft, but will add to and modernize that by the end of the year, according to the statement.
MatlinPatterson is a $9 billion PE group; among its most recent investments was a $530 million infusion into homebuilder Standard Pacific Corp.
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