Aloha and Piuraa Horizon Lines
The US ocean cargo carrier Horizon Lines has completed the previously announced sales of its Alaska operations to Matson Inc. for USD 469 million, and its Hawaii trade lane assets to The Pasha Group for USD 141.5 million.
Matson acquired the stock of Horizon for USD 0.72 per fully diluted common share, or USD 69 million, and repaid Horizon’s outstanding debt which amounted to USD 400 million. Matson financed the transaction with cash on hand and available borrowings under its revolving credit facility.
Matson will continue Horizon’s long operating history in Alaska with a three vessel deployment of diesel powered Jones Act qualified container ships that provide two weekly sailings from Tacoma to Anchorage and Kodiak, and a weekly sailing to Dutch Harbor. In addition, Matson will be operating port terminals in Anchorage, Kodiak and Dutch Harbor and acquiring several reserve steam powered Jones Act container ships that may be used for dry-dock relief.
“We are pleased to have completed this strategic acquisition that substantially grows our ocean transportation business into the attractive Alaska market,” said Matt Cox, President and Chief Executive Officer of Matson.
“The Alaska market is a natural geographic extension of our platform as a leader serving our customers in the Pacific. We are excited by the long-term prospects of the Alaska trade lane and expect this transaction to deliver shareholder value through earnings and cash flow accretion.”
Pasha Hawaii will assume operations for all of Horizon’s Hawaii business, including its four US-flag container ships serving the Hawaii trade lane. The Pasha Group has also acquired Horizon subsidiaries Hawaii Stevedores, Inc.; the California-based operations of Sea-Logix, LLC, which provides trucking services; and Sunrise Operations, a subsidiary that includes Horizon’s Hawaii trade-lane vessels and employees.
Horizon’s Hawaii business will operate alongside Pasha Hawaii’s existing operations, which include Pasha’s two Jones Act-qualified vessels, the M/V Jean Anne and the new M/V Marjorie C¸ which entered service on May 7, 2015.
”Since Pasha entered the Hawaii liner-shipping business ten years ago, we have strived to deliver quality shipping options for our commercial and military customers. In 2015, we strengthen that commitment with the deployment of our new tonnage in the Marjorie C and the acquisition of Horizon’s Hawaii service capabilities,’‘ said Pasha.
”Our mission is to provide a smooth and seamless transition for Horizon’s customers and employees, and continue to enhance all our customers’ shipping experience through service and choice.”