Atlantic Street Capital Sells GAT to PrimeFlight in Aviation Services Deal

This article is based on an official press release from Atlantic Street Capital and summarizes additional industry reporting regarding regulatory developments.

Private Equity Firm Exits Aviation Services Investment Amidst Industry Consolidation

On February 5, 2026, Atlantic Street Capital (ASC), a private equity firm specializing in lower middle-market investments, announced the sale of its portfolio company, GAT Airline Ground Support, Inc. The buyer is PrimeFlight Aviation Services, a global provider of aircraft and passenger services backed by The Sterling Group and Capitol Meridian Partners. While financial terms of the transaction were not disclosed, the deal marks a significant exit for ASC, which has held GAT since 2017.

The acquisition represents a major consolidation event within the North American aviation ground services sector. By acquiring GAT, PrimeFlight significantly expands its operational footprint, integrating a network that includes ground handling, cargo handling, and catering services. However, the transaction has immediately drawn scrutiny from labor organizations concerned about market dominance and workforce impacts.

Transaction Details and Strategic Context

According to the official press release from Atlantic Street Capital, the firm acquired GAT in 2017 from the founding family. Over the course of its nine-year ownership, ASC transitioned the company from a family-owned business into a professionalized industry leader. This period included the strategic acquisition of Sky Café, which allowed GAT to expand its catering services into the Canadian market.

Peter Shabecoff, Managing Partner at Atlantic Street Capital, highlighted the firm’s operationally intensive strategy in transforming GAT. The sale to PrimeFlight is positioned as the next phase of growth for the ground support provider. Piper Sandler & Co. served as the financial advisor to GAT, while Kirkland & Ellis LLP provided legal counsel.

Scale of the Combined Entity

Data regarding the operational scale of both companies underscores the magnitude of this mergers. According to industry reports and company profiles:

• GAT Airline Ground Support: Operates at nearly 70 airports across North America with approximately 6,000 employees.
• PrimeFlight Aviation Services: Operates at over 250 airports globally, offering services ranging from fueling and deicing to passenger support.

The integration of GAT’s 6,000-strong workforce and its specific expertise in ground and cargo handling is expected to complement PrimeFlight’s existing service portfolio, creating a “one-stop-shop” for airline vendors.

Labor Opposition and Regulatory Challenges

While the companies tout the strategic benefits of the merger, the deal faces immediate headwinds from organized labor. According to a statement released by UNITE HERE Local 11 on February 5, 2026, the union has formally requested that federal regulators intervene.

The union sent a letter to the Federal Trade Commission (FTC) and the Department of Justice (DOJ) urging them to block the acquisition on antitrust grounds. The labor group argues that the merger would reduce competition, potentially leading to higher prices for airlines and consumers while suppressing worker wages.

“The union highlights that PrimeFlight and GAT have overlapping operations at 27 airports, including major hubs like Atlanta (ATL), San Francisco (SFO), and Phoenix (PHX).”

, Summary of UNITE HERE Local 11 Complaint

The union contends that the combined entity would hold a dominant market position in 44 states, raising concerns about the reduction of competitive bidding options for air carriers.

AirPro News Analysis

The Push for Modernization and Efficiency

We observe that this transaction aligns with a broader trend of consolidation in the aviation services market, driven by the need for economies of scale. As airports and airlines push for greener operations, ground handling companies face increasing capital requirements to transition toward Electric Aviation Ground Support Equipment (eGSE). Larger entities like the combined PrimeFlight-GAT are generally better positioned to absorb the significant capital costs associated with electrifying tugs, loaders, and other ramp equipment.

However, the regulatory environment in 2026 remains aggressive regarding mergers that may reduce labor market competition. The specific overlap at major hubs identified by UNITE HERE Local 11 could trigger a more prolonged review process than a standard private equity exit would typically warrant.

Frequently Asked Questions

Who is the seller in this transaction?
The seller is Atlantic Street Capital (ASC), a private equity firm that has owned GAT Airline Ground Support since 2017.

What companies are backing the buyer, PrimeFlight?
PrimeFlight Aviation Services is backed by private equity firms The Sterling Group and Capitol Meridian Partners, who acquired the company in 2023.

Why is the union opposing the deal?
UNITE HERE Local 11 argues that the merger reduces competition, which could harm worker wages and increase costs for airlines. They cite overlapping operations at 27 airports as a key antitrust concern.

Sources

• Atlantic Street Capital Press Release
• UNITE HERE Local 11 Statement (via Business Wire)