By Adriano Marchese

Cargojet Inc. has signed an agreement to provide air-transportation services to logistics provider DHL Network Operations (USA) Inc. for up to seven years.

The Canadian air cargo services company said it has entered into a long-term strategic agreement with DHL Network Operations (USA) Inc., an affiliate of German package delivery and supply chain management company Deutsche Post DHL Group, for a term of five years with an option to extend it to seven.

Cargojet will provide ACMI, CMI, charter, and aircraft dry lease services to DHL to support international requirements for Europe and North, South, Central and Latin America, as well as Asia, it said.

The company said the agreement is expected to be meaningfully accretive to its earnings and cash flows over time and would help Cargojet diversify its portfolio of services.

Additionally, Cargojet will issue to DHL warrants to acquire up to 9.5% of its outstanding voting shares at a price of C$158.92 per share, the equivalent of US$126.95 each.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

March 29, 2022 07:46 ET (11:46 GMT)

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