WestJet Airlines Ltd. (TSX:WJA) announced Monday that it has agreed to be acquired by Onex Corporation (TSX: ONEX) in a deal valued at $5 billion.
Under the agreement, Onex Corp. will pay $31 per share for WestJet, which will continue to operate as a privately held company. Shares in the national airline closed at $18.52 on Friday.
The deal still has yet to be approved by WestJet shareholders.
"I am particularly pleased that WestJet will remain headquartered in Calgary and will continue to build on the success that our 14,000 WestJetters have created," said Clive Beddoe, WestJet's Chairman said in a news release announcing the deal. "Onex' aerospace experience, history of positive employee relations and long-term orientation makes it an ideal partner for WestJetters, and I am excited about our future."
Onex made a takeover approach to WestJet in March 2019, at which point WestJet’s Board of Directors formed a special committee to advise on the proposed transaction. On the committee’s advice, WestJet’s Board unanimously recommends that shareholders approve the transaction at a special meeting of shareholders expected in July 2019.
WestJet flies to more than 100 destinations in North America, Central America, the Caribbean and Europe. Last year, the company launched a new ultra-low-cost carrier called "Swoop" amid a competitive budget airlines market.
