Republic continues shopping spree with Midwest purchase
Just a day after announcing plans to bring Frontier Airlines under its control, Republic Airways Holdings has revealed details of its planned purchase of Midwest Airlines from TPG Capital. The deal is subject to customary regulatory approvals and is expected to close in four to six weeks.
Republic will acquire 100% of the equity of Midwest and TPG’s $31 million secured note from Midwest. Consideration will be $6 million in cash and a $25 million, five-year note, which may be converted to RJET stock at $10 per share. In addition, TPG will have the right to nominate a member to the Republic board of directors.
“This acquisition will enhance the strategic positioning of Republic Airways,” remarked Bryan Bedford, chairman, president and CEO of Republic Airways. “Midwest has built a strong brand, a loyal base of customers and dedicated team of employees. We look forward to welcoming them to the Republic family and continuing the Midwest tradition of excellent customer care.
“As Midwest celebrates its 25th anniversary, I want to make sure I recognise what the employees of Midwest – past and present – have built and sustained through both good and difficult times. This is a great brand built on superior customer service that will continue under new ownership,” Bedford added.
Under the agreement, Midwest will become a wholly owned subsidiary of Republic Airways, with the Midwest brand continuing. Midwest’s Boeing 717s will be replaced with Embraer 190 aircraft, enhancing Midwest’s ability to offer nonstop service to key destinations important to its frequent flyers.
The deal makes Midwest the seventh airline under Republic's control. This year, to its existing trio of Chautauqua Airlines, Republic Airlines and Shuttle America, RJET has added Mokulele Airlines, Frontier Airlines, Lynx Aviation and now Midwest.