Lone Star Funds has agreed to acquire Alliance Ground International (AGI), a major North American airport services provider, in a deal that underscores rising private equity interest in mission-critical aviation infrastructure.
The transaction, announced on January 22, will see an affiliate of Lone Star Fund XII, L.P. acquire AGI from Greenbriar Equity Group and Audax Private Equity. Financial terms were not disclosed, and the deal remains subject to customary closing conditions and regulatory approvals.
The acquisition brings together a global investment firm with a fast-growing airport services operator at a time when cargo volumes, airline outsourcing, and operational efficiency remain central to aviation sector resilience.
A Strategic Bet on Airport Infrastructure
Founded in 1987 and headquartered in Miami, Alliance Ground International has grown into one of the largest U.S.-owned aviation handling companies in North America. The company operates at more than 60 airports across the United States and Canada and employs over 12,000 professionals.
AGI’s core business is air cargo handling, a segment that has taken on heightened importance as global supply chains adjust to shifting trade flows and e-commerce demand. The company also provides passenger terminal services, ground handling, mail handling, security, and hospitality services.
Its integrated service model and on-airport footprint have positioned AGI as a key operational partner for both cargo carriers and passenger airlines, supporting the efficient movement of aircraft through major airport hubs.
Takeaway
Lone Star’s Growth and Investment Plans
Lone Star said it plans to work closely with AGI’s management team to support further growth and identify areas for targeted investment. The firm indicated that expansion across several operating segments and deeper penetration into both existing and new markets will be a focus.
The investor also highlighted continuity in service quality, safety, and workplace culture as priorities following the transaction.
Donald Quintin, Chief Executive Officer of Lone Star, said the acquisition aligns with the firm’s long-standing strategy of backing businesses that provide essential services.
“We are pleased to reach this agreement to acquire AGI, a company that has grown into a true leader,” Quintin said. “Lone Star has a history of partnering with businesses like AGI that support mission-critical services to key industries.”
Quintin added that Lone Star intends to collaborate closely with AGI’s leadership.
“We will work alongside the company’s management team to drive growth, while also remaining committed to the high-quality operations its customers have come to expect,” he said.
Takeaway
AGI Leadership Sees Global Expansion Opportunity
AGI’s management framed the deal as a platform for the company’s next phase of expansion, both geographically and operationally.
Jared Azcuy, Chief Executive Officer of Alliance Ground International, said the partnership with Lone Star would help accelerate AGI’s ambitions across the aviation services landscape.
“This partnership with Lone Star marks an important milestone in AGI’s continued growth,” Azcuy said. “Our strong focus on safety, reliability, and service excellence has driven AGI’s rapid expansion across the aviation industry.”
Azcuy pointed to technology and global reach as priorities under the new ownership structure.
“Working alongside Lone Star, we are excited to pursue global growth, lead in technological innovation, and continue raising the standard of service for our airline customers,” he said.
The comments suggest AGI may look beyond its current North American footprint over time, as demand for outsourced airport services continues to rise globally.
Takeaway
Why Ground Handling Is Drawing Investor Interest
Airport ground handling and cargo services have become increasingly attractive to financial sponsors as airlines focus on asset-light models and outsource non-core operations.
Operators like AGI provide essential, recurring services tied closely to flight activity rather than passenger demand alone. Cargo handling in particular has benefited from structural growth in air freight, driven by e-commerce, pharmaceuticals, and high-value goods.
At the same time, barriers to entry — including airport access rights, safety certifications, and labor requirements — can limit competition and support long-term contracts with airline customers.
These characteristics align closely with private equity strategies that target predictable revenue streams and operational improvement opportunities.
Takeaway
Advisors and Transaction Details
Evercore is acting as financial advisor and Vinson & Elkins as legal counsel to Lone Star in connection with the transaction.
BofA Securities is serving as financial advisor to AGI, with Ropes & Gray providing legal counsel.
The companies said the transaction is subject to customary closing conditions and approvals. No timeline for completion was disclosed.
AGI will continue to operate under its existing brand and leadership team following the acquisition, according to the announcement.
Takeaway
Lone Star’s Broader Investment Strategy
Lone Star is a global investment firm with a 30-year track record of investing across private equity, credit, and real estate. Since launching its first fund in 1995, the firm has raised approximately $95 billion in aggregate capital commitments across 25 private equity funds.
The firm is known for investing in complex or transitional situations, often focusing on sectors where operational improvement and strategic repositioning can unlock value.
The acquisition of AGI adds aviation services to Lone Star’s portfolio of investments in industries considered essential to economic activity, regardless of broader market cycles.
As airlines and airports continue to adapt to post-pandemic travel patterns and evolving global trade dynamics, assets like AGI are likely to remain in focus for financial sponsors seeking resilient, infrastructure-adjacent opportunities.
