ABX Holdings, Inc. (ABXA) announced in December 2007 that it completed its previously announced holding company reorganization and plan to acquire Cargo Holdings International, Inc. (CHI), a privately held provider of outsourced air cargo services based in Orlando, FL for $332M in cash and common shares of ABX Holdings, its newly formed parent company.
Immediately prior to the closing of the acquisition of CHI, ABX Air created a new holding company structure, with ABX Air becoming a wholly owned subsidiary of ABX Holdings, Inc. As a result, shareholders of ABX Air became shareholders of ABX Holdings. As part of this transaction, CHI became a subsidiary of ABX Holdings.
Joe Hete, president and chief executive officer of ABX Holdings and ABX Air said the transaction will increase value for ABX Holdings’ shareholders because of the greater scale, breadth of service offerings, and market reach of the ABX Holdings’ companies. “With the completion of this transaction, we will now focus on developing new ways to serve customers, particularly for our principal customers DHL and BAX/Schenker, by leveraging the collective capabilities of our family of businesses,” said Hete.
ABX Holdings is an air cargo services provider operating from Wilmington, OH and 14 hubs throughout the United States. Through four subsidiaries, including two companies with separate and distinct U.S. FAA Part 121 Air Carrier certificates, CHI is able to provide aircraft leasing, airport ground services, fuel management, specialized transportation management, and air charter brokerage services.
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