Atlas Air Worldwide Holdings, Inc. said it has completed its acquisition of privately held Southern Air Holdings, Inc., a premier provider of intercontinental and domestic CMI (crew, maintenance and insurance) services, for cash consideration of approximately US$110 million.

“The strategically compelling, highly complementary combination,” provides Atlas Air Worldwide immediate entry into B777 and B737 aircraft operating platforms with opportunities for additional growth and enhancing Atlas Air Worldwide’s position as a leading global provider of outsourced aircraft and aviation operating services, the company said.

Southern Air is the parent company of Worldwide Air Logistics Group, Inc. and its two operating subsidiaries, Southern Air, Inc. and Florida West International Airways, Inc.

“We are proud to welcome Southern Air, its operating companies, and its professional, experienced workforce to the Atlas family,” said William J. Flynn, president and CEO of Atlas Air Worldwide. “Together, we will be a stronger, more diversified, more profitable company offering access to the widest range of modern, efficient aircraft for domestic, regional and international applications.

“We have known and respected Southern Air for some time, and we have a lot in common. We are both committed to safety, customer service, and performance excellence. Our complementary operations will also provide a broader array of services for customers and new avenues of business growth, which will generate greater opportunities for employees and drive value for shareholders.”

Southern Air’s five B777 and five B737 CMI aircraft complement Atlas Air Worldwide’s B747 ACMI (aircraft, crew, maintenance and insurance) and charter operations, its B747 and B767 CMI services, and its freighter-centric dry leasing portfolio of B777, B757 and B737 aircraft. In total, the companies will have a fleet of more than 75 aircraft.

Consistent with prior guidance, the combination with Southern Air is anticipated to add approximately $100 million in annualised revenues to Atlas Air Worldwide. It is also expected to be immediately accretive to Atlas Air Worldwide’s adjusted earnings per share in 2016 with EBITDA and adjusted net income margins in line with Atlas Air Worldwide’s.

Reflecting the company’s balance sheet position, Atlas Air Worldwide funded the acquisition of Southern Air using available cash on hand.