ABX completes CHI acquisition and holding company formation

ABX Holdings, Inc., successor to ABX Air, Inc. has completed its previously announced (November 2, 2007) holding company reorganization and plan to acquire Cargo Holdings International (CHI), a privately held provider of outsourced air cargo services based in Orlando, Fla., for $332 million in cash and common shares of ABX Holdings, its newly formed parent company.

The final equity purchase price of the transaction was $259 million, consisting of $233 million in cash and four million shares of ABX Holdings common stock. ABX Air also assumed or repaid $73 million in outstanding net debt of CHI. The transaction was funded primarily with cash obtained through a new $345 million senior secured credit facility, led by SunTrust Bank and Regions Bank.

ABX Air and CHI have a total fleet of more than 135 aircraft, including the largest fleet of 767 freighter aircraft. The majority of these aircraft operate under contracts to provide airlift on behalf of DHL and BAX/Schenker in the U.S. and various other customers around the world.

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