Pasha Group acquired Horizon Line’s Hawaii trade lane operations, while Matson took over the ocean carrier’s Alaska business.
The break-up and sale of Horizon Lines was completed officially Friday.
Matson completed its acquisition of Horizon’s Alaska business for $469 million, making it a leading container carrier to the state. Matson will also assume all of Horizon’s non-Hawaii business liabilities.
Separately and immediately preceding the Matson transaction, Horizon completed the sale of its Hawaii trade lane assets and liabilities to the Pasha Group for $141.5 million. Matson is already the leading carrier to Hawaii.
Horizon ended its service to Puerto Rico earlier this year.
Matson will continue Horizon’s Alaska service with three diesel powered Jones Act qualified containerships 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 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 CEO 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.”
Excluding the one-time transaction costs and other restructuring and integration costs, Matson said it expects the deal to increase earnings per share by a percentage amount in the “low to mid-teens” in the next year and by 35 to 45 cents within two years. Last year Matson had earnings per share of $1.63.
Pasha, which operates the roll-on/roll-off ship Jean Anne and the combination ro-ro/containership Marjorie C between California and Hawaii, said it has assumed operations for all of Horizon’s Hawaii business, including four U.S.-flag containerships, Hawaii Stevedores, Inc., Sea-Logix, which provides trucking services, and Sunrise Operations, a subsidiary that includes Horizon’s Hawaii trade lane vessels and employees.
George Pasha IV, president and chief executive officer of the Pasha Group said of the deal, “Like Pasha Hawaii, these companies have strong ties to the islands and the mainland, are aligned with our integrated shipping and logistics model, and share our values and community commitment.”
Pasha Hawaii’s technical services team will oversee operations for its entire fleet, with Crowley Maritime Corporation providing ship management and crew for the new Horizon vessels.
Pasha has engaged Norton Lilly to provide certain liner agency services, both in Hawaii and the mainland.
The company will also continue its long-time partnership with Young Brothers to maintain connecting-carrier service to the Neighbor Islands.
“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.”
Pasha, Matson complete Horizon acquisition
