Air cargo provider Kitty Hawk has announced plans to buy the assets of Air Container Transport, which operates an airport-to-airport ground freight network in several states, for $5 million. Air Container Transport’s network extends across Texas, Illinois, Utah, Colorado, Oregon, Washington and British Columbia; the San Francisco-based company had revenue of $44.5 million in 2005, according to Kitty Hawk.
Under the deal, Kitty Hawk will acquire contracts relating to Air Container’s customer base, trucks and trailers, leased operating facilities, various other facility and equipment leases, and its fleet of owner-operators. Air Container’s assets will be operated by Kitty Hawk Ground, a newly created subsidiary that will do business as Air Container Transport.
“While the majority of ACT’s customers and its geographic coverage represent new opportunities for Kitty Hawk, ACT’s operations and service offerings are complementary to the existing Kitty Hawk scheduled operations and provide us with a solid infrastructure to expand all of our businesses with existing and new customers,” says Robert W. Zoller, president and chief executive officer of Dallas-based Kitty Hawk. “Through this acquisition, we expect to begin to realize marketing and sales synergies during the remainder of 2006.”
