Alaska Air to buy Hawaiian Airlines for $1.9 billion

(Reuters) – Alaska Air (NYSE:) said on Sunday that it has entered an agreement to acquire Hawaiian Airlines for $1.9 billion, which includes $0.9 billion of Hawaiian Airlines net debt.

Alaska Airlines will acquire Hawaiian Airlines for $18.00 per share in cash, the two companies said, adding that the transaction will unlock more destinations and expand access throughout the Pacific region, continental United States and globally.

The deal is expected to generate high single digit earnings accretion for Alaska Airlines within the first two year, it said.

The combined organization will be based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci.