Friday, June 5, 2015

Horizon Completes Asset Sales to Pasha, Matson

By Mark Edward Nero

Horizon Lines said May 29 that it has completed a sale of its assets, including its Alaska operations and the assumption of all non-Hawaii business liabilities, to Matson Inc. Horizon also completed the sale of its Hawaii operations to the Pasha Group.

Matson acquired the stock of Horizon for 72 cents 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 says it will continue Horizon's long operating history in Alaska with a three vessel deployment of 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 says it will operate port terminals in Anchorage, Kodiak and Dutch Harbor and acquire several reserve steam-powered Jones Act containerships that can be used for dry-dock relief.
Meanwhile, Pasha Hawaii assumes operations for all of Horizons Hawaii business, including its four US-flag containerships 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 Horizons Hawaii trade-lane vessels and employees.

Horizons Hawaii business is to operate alongside Pasha Hawaiis existing operations, which include two Jones Act-qualified vessels that entered service on May 7. Pasha Hawaiis technical services team has been charged with overseeing operations for its entire fleet, with Crowley Maritime providing ship management of the new Horizon vessels and crew through Crowley subsidiary Marine Transport Management.

Pasha has engaged Norton Lilly to provide certain liner agency services, both in Hawaii and the mainland. The company also says it plans to continue its longtime partnership with Young Bros. to maintain connecting-carrier service to the neighbor islands.

Horizon first announced the proposed deals with Matson and Pasha in November 2014.