Cargojet Signs Long-Term Air-Transportation Services Agreement with DHL
March 29 2022 - 8:01AM
Dow Jones News
By Adriano Marchese
Cargojet Inc. has signed an agreement to provide
air-transportation services to logistics provider DHL Network
Operations (USA) Inc. for up to seven years.
The Canadian air cargo services company said it has entered into
a long-term strategic agreement with DHL Network Operations (USA)
Inc., an affiliate of German package delivery and supply chain
management company Deutsche Post DHL Group, for a term of five
years with an option to extend it to seven.
Cargojet will provide ACMI, CMI, charter, and aircraft dry lease
services to DHL to support international requirements for Europe
and North, South, Central and Latin America, as well as Asia, it
said.
The company said the agreement is expected to be meaningfully
accretive to its earnings and cash flows over time and would help
Cargojet diversify its portfolio of services.
Additionally, Cargojet will issue to DHL warrants to acquire up
to 9.5% of its outstanding voting shares at a price of C$158.92 per
share, the equivalent of US$126.95 each.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
March 29, 2022 07:46 ET (11:46 GMT)
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