CHARLOTTE, N.C., Horizon Lines has agreed to sell its Hawaii trades business to the Pasha Group for US$141.5 million and be purchased by Matson Inc. immediately following the completion of the transaction.
Matson will then acquire Horizon for US$69.2 million plus any outstanding debt at closing. The total value of the three-way deal is US$456.1 million and is expected to finalize in 2015.
David Weinstein, board chairman of Horizon Lines said: "These transactions will place our company in the hands of strong stewards with reputations for outstanding customer service. Matson has over 130 years of shipping experience and is guided by a rich history of integrity and innovation. Pasha is a third generation, family-owned business with a proud heritage of excellence and deep ties to the Hawaiian community. Both Matson and Pasha are well-positioned to serve our valued customers."
In a separate announcement, Horizon says it will terminate service between the U.S. and Puerto Rico independent of the outcome of the Pasha Group and Matson transactions.
"The acquisition of Horizon's Alaska operations is a rare opportunity to substantially grow our Jones Act business," said Matt Cox, president and CEO of Matson. "Horizon's Alaska business represents a natural geographic extension of our platform as a leader serving our customers in the Pacific."
Horizon has been providing Jones Act container services to Alaska since 1964 and currently operates two weekly sailings between its terminals in Tacoma, Anchorage and Kodiak plus a weekly sailing to its Dutch Harbor port facility.
Founded in 1882, Matson provides services to Hawaii, Guam, Micronesia and other South Pacific islands plus an expedited service from China to Southern California with a mixed container/RORO fleet of 21 owned and chartered vessels. The company says it expects the Horizon purchase will add US$70 million to its financial year following completion.
Headquartered in San Rafael, CA, the Pasha Group is a transport and logistics company. The expected purchase of Horizon's Hawaii trades business includes four Jones Act container ships - adding to the company's fleet of container/RORO vessels.
"Since Pasha entered the Hawaii transportation circuit nearly 10 years ago, we have elevated the quality of customer service," said George Pasha, IV, president and CEO. "With this acquisition, we will supplement that service and provide an improved, more competitive offering on the Hawaii trade lane."