Alaska Air Group to acquire Virgin America, aggregate transaction value of USD4bn
Alaska Air Group Inc, parent company of Alaska Airlines, and Virgin America Inc announced (04-Apr-2016) that their boards of directors have unanimously approved a definitive merger agreement, under which Alaska Air Group will acquire Virgin America for USD57.00 per share in cash. Including existing Virgin America indebtedness and capitalised aircraft operating leases, the aggregate transaction value is approximately USD4.0 billion. Alaska Air said: "With an expanded West Coast presence, a larger customer base, and an enhanced platform for growth, Alaska Airlines will be positioned to provide more choices for customers, increase competition and deliver attractive returns to investors." Together, the combined airline will have 1200 daily departures, with hubs in Seattle, San Francisco, Los Angeles, Anchorage, Alaska, and Portland, and approximately 280 aircraft, which include regional aircraft, with an average age of 8.5 years. Following closing, Alaska Airlines will welcome Virgin America Elevate loyalty program members into its Mileage Plan with the programmes to be merged post-closing. The combined organisation will be based in Seattle under the leadership of Alaska Air Group chairman and CEO Brad Tilden and his senior leadership team. Until receiving regulatory approval to close, Mr Tilden and Virgin America president and CEO David Cush will co-lead a transition team, which will develop a specific integration plan. The merger, which has been approved unanimously by the boards of directors of both companies, is conditioned on receipt of regulatory clearance, approval by Virgin America shareholders and satisfaction of other customary closing conditions. The companies expect to complete the transaction with regulators' approval no later than 01-Jan-2017. [more - original PR] [more - SEC Filing]