A Genesee & Wyoming subsidiary in the United Kingdom will purchase APM Terminals subsidiary Pentalver Transport, which operates off-dock container terminals in each of the UK’s four major seaports, as well as an inland terminal and a trucking operation.
Short line and regional railway Genesee & Wyoming Inc.’s United Kingdom subsidiary, GWI UK Acquisition Co. Ltd., will acquire Pentalver Transport Ltd. from parent company APM Terminals for 87 million euros (U.S. $110 million), the company said in a statement.
Based in Southampton, Pentalver operates off-dock container terminals at each of the UK’s four major seaports – Felixstowe, Southampton, London Gateway and Tilbury – as well as an inland terminal in Cannock and a drayage trucking operation, primarily between the off-dock terminals and its inland facility in Cannock. The company also provides services related to container maintenance and repair, including refrigerated (reefer) containers, and is one of the largest sellers of new and used containers in the UK.
G&W said Pentalver’s operations are complementary to those of its Freightliner subsidiary, which is the largest provider of ocean container transportation by rail in the country.
The company said it expects the Pentalver acquisition will enable G&W to enhance its UK services by providing rail and road transportation solutions, as well as offering storage options at the ports and inland, and unlock efficiencies from shared services and enhanced asset utilization from Pentalver’s trucking fleet and Freightliner’s existing fleet.
Pentalver and its 600 employees will continue to be run by current Managing Director Chris Lawrenson, and will operate as part of G&W’s UK/Europe Region.
“The acquisition of Pentalver is an excellent strategic fit with our existing intermodal offering in the UK,” Jack Hellmann, president and chief executive officer of G&W, said of the deal. “With the advent of larger container ships and the growth of distribution centers in the Midlands and throughout the UK, our maritime intermodal customers are seeking greater service optionality, which includes not only rail and road transportation but also the ability to store, maintain and position containers. Amidst the dramatic changes that are structurally altering the global shipping industry, we are pleased to be enhancing our service capabilities to meet the long term needs of our intermodal customers in the UK”
“This divestment is in line with APM Terminals’ strategy to develop and optimize our portfolio of businesses,” added APM Terminals Vice President and Head of Port Investment Joe Nicklaus Nielsen. “Pentalver is a successful business, and we are pleased to have found a new strong owner in Genesee & Wyoming.”
G&W UK to acquire Pentalver for $110m
