Airborne Maintenance and Engineering Services Inc., a subsidiary of Air Transport Services Group, Inc., has acquired PEMCO World Air Services, a private company based in Tampa, Florida which carries out passenger-to-freighter aircraft conversions and provides heavy maintenance, repair and overhaul services.

According to ATSG, the acquisition will enable the two companies to combine their operational strengths, expand their capabilities and reduce costs related to shared services.

“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,” said Joe Hete, president and CEO of ATSG. “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. The combination of PEMCO’s conversion and MRO sales of both Airbus and Boeing products with AMES’ existing offerings will create a sustained, growth-oriented aircraft maintenance product and services portfolio.”

The services offered by the combined businesses will be marketed to customers worldwide as part of a comprehensive set of ATSG solutions. Passenger-to-freighter conversions will be offered from Tampa, Central America and Asia, while heavy maintenance and modifications will be offered from multiple locations, including Tampa and Wilmington, Ohio.

The acquisition of PEMCO is expected to contribute to ATSG’s earnings starting in 2017, according to Hete.

ATSG signed an agreement to lease and operate 20 767 freighters for Amazon.com in March 2016.