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At the same time, Horizon is selling its Hawaii operations to The Pasha Group for $141.5m, and will shut down its Puerto Rico liner operations at the end of 2014. Under the deal, Matson will acquire Horizon’s assets for 72 cents per fully diluted common share, or $69.2m, plus repayment of outstanding debt. That brings the total value of the transaction to $456.1m. According to Matt Cox, president and chief executive officer of Matson, “Horizon’s Alaska business represents a natural geographic extension of our platform as a leader serving our customers in the Pacific.” He added that Matson is “encouraged” by the long-term prospects of the Alaska trades. Horizon has operated a fleet of 13 Jones Act-qualified ships and five port terminals in Alaska, Hawaii and Puerto Rico. It is the only ocean carrier serving all three non-contiguous domestic markets from the continental U.S. The shutdown of Puerto Rico operations will take place regardless of whether the Matson deal goes through, Horizon said.
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