Republic Airways Holdings has completed its acquisition of Midwest Airlines.
Midwest, based in suburban Milwaukee, is now a wholly owned subsidiary of Indianapolis-based Republic Airways Holdings (Nasdaq: RJET) and will continue to operate as a branded carrier, Republic Airways said Friday. The seller was TPG Capital, a private equity firm based in Fort Worth, Texas.
Midwest has about a 6 percent market share at Kansas City International Airport and occupies three gates.
Republic acquired 100 percent of the equity of Midwest for $6 million in cash and a $25 million, five-year note, which may be converted to Republic stock at $10 a share.
A number of senior-level Midwest Air executives will be leaving, including Midwest Air Group Inc. Chairman Tim Hoeksema. Bryan Bedford, chairman and CEO of Republic Airways, will serve as CEO of Midwest after the close of the transaction.
Republic Airways Holdings is an airline holding company that owns Chautauqua Airlines, Republic Airlines and Shuttle America. The airlines offer scheduled passenger service on approximately 1,200 flights daily to 101 cities in 37 states, Canada and Mexico through airline services agreements with seven U.S. airlines, including Midwest.
Republic and Southwest Airlines have competing bids to buy Denver-based Frontier Airlines.