Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, December 16, 2022

Article Excerpt

CARGOJET INC., $122.09, symbol CJT on Toronto, provides time-sensitive, premium overnight air cargo services across North America. Its fleet of 34 cargo aircraft currently moves more than 25 million pounds of cargo every week. The company has three main segments: it operates a domestic air cargo network between 16 major Canadian cities; it provides dedicated aircraft to customers on an aircraft, crew, maintenance and insurance (“ACMI”) basis, operating between points in Canada, the U.S., Mexico and Europe; and it operates scheduled international routes for multiple cargo customers, operating between points in Canada, the U.S., Mexico, South America, Asia and Europe. Over the past several years, Cargojet has evolved its business model to increasingly focus on strategic partnerships rather than transactional relationships with its customers. For instance, in March 2022, Cargojet entered into a long-term agreement with DHL Network Operations (USA) Inc., a division of Germany’s giant Deutsche Post AG. The agreement sees Mississauga, Ontario-based Cargojet provide DHL with a range of services across Europe,…