Republic Airways Holdings Inc. (RJET) said Tuesday that it is acquiring Midwest Airlines from private equity firm TPG Capital.
The deal 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 Republic Airways Holdings stock at $10 per share. In addition, TPG will have the right to nominate a member to the Republic Board of Directors.
Under the deal, 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.
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