Matson Inc (NYSE: MATX) has completed its previously announced acquisition of Horizon Lines Inc (OTCQB: HRZL) that includes Horizon’s Alaska operations and the assumption of all non-Hawaii business liabilities.
Separately and immediately preceding completion of this transaction, Horizon completed the sale of its Hawaii trade lane assets and liabilities to The Pasha Group for $141.5 million.
Matson acquired the stock of Horizon for $0.72 per fully diluted common share, or $69 million, and repaid Horizon’s outstanding debt, for a total transaction value of $469 million (before transaction costs). Matson financed the transaction with cash on hand and available borrowings under its revolving credit facility.
Horizon’s long operating history in Alaska will be continued by Matson with a three-vessel deployment of diesel-powered, Jones Act-qualified containerships that provide two weekly sailings from Tacoma WA to Anchorage and Kodiak AK, and a weekly sailing to Dutch Harbor AK. In addition, Matson will be operating port terminals in Anchorage, Kodiak, and Dutch Harbor and acquiring several reserve steam-powered Jones Act containerships 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.”
Founded in 1882, Matson is a leading US carrier in the Pacific. It provides a lifeline to the economies of Hawaii, Alaska, Guam, Micronesia, and select South Pacific islands, and operates an expedited service from China to Southern California. The company’s fleet of 25 vessels includes containerships, combination container and roll-on/roll-off ships and custom-designed barges.
Additional information is available at www.matson.com.