Air Transport Services Group (ATSG) subsidiary, Airborne Maintenance and Engineering Services (AMES) has acquired PEMCO World Air Services.

The companies say acquiring the heavy maintenance, repair and overhaul (MRO) and passenger-to-freighter conversion provider will offer strategic benefits including combining operational strengthens, expanded capabilities and cost savings.

ATSG president and chief executive officer, Joe Hete says the deal will combine PEMCO’s conversion and MRO sales of Airbus and Boeing products with AMES’ existing offerings.

He says: “Based on PEMCO’s existing domestic and international scale, this acquisition will expand access to maintenance service for customers of ATSG’s expanding fleet of Boeing 767 cargo aircraft.”

“It is consistent with our goal to diversify ATSG’s revenue and earnings, for an investment in the same price range as our planned and completed stakes in cargo airlines in China and Europe.”