HNA Group, Bravia
agree to purchase
joint venture GE SeaCo
Aug 3, 2011 10:27 AM
HNA Group Company Limited of China and Bravia Capital of Hong Kong have agreed to acquire GE SeaCo, subject to customary regulatory and shareholder approvals.
GE SeaCo is the fifth-largest player in the global marine container leasing industry, owning and managing more than 870,000 20-foot equivalent units (TEUs), the industry’s standard measure.
In this transaction, HNA would acquire the 50/50 joint venture between GE Capital and SeaCo Ltd as well as certain owned container assets of SeaCo Ltd and GE (Genstar), currently managed by GE SeaCo. Of the $1.048 billion equity purchase price, GE will receive about $500 million for its interests in the joint venture and its owned container fleet (net of certain seller transaction costs). SeaCo Ltd will receive about $528 million for its interests in the joint venture and its owned container fleet (net of certain seller transaction costs).
Established in 1998 as a joint venture between General Electric Capital Corporation and Sea Containers Ltd (since replaced by SeaCo Ltd), GE SeaCo has operated as a stand-alone business registered in Barbados with 13 operating, sales, and support offices worldwide. Its head office is in Singapore and has representatives in more than 80 nations.
After completion of the acquisition, GE SeaCo will operate as a core business within HNA’s logistics and finance businesses. GE SeaCo’s key managers will remain with the company.
The acquisition aligns with HNA/Bravia’s strategy of acquiring top-tier, asset-heavy businesses within the transportation, logistics, and infrastructure sectors. GE SeaCo offers a range of marine containers for every use, including refrigerated and temperature-controlled units, tanks, standard dry freight boxes, swapbodies, and the two-pallet-wide SeaCell. The new owner intends to increase the size of GE SeaCo over the 18 to 24 months after the acquisition.
The acquisition is being funded by a combination of equity and debt. HNA and Bravia have arranged a committed debt facility through Deutsche Bank and ING. Deutsche Bank Securities Inc served as sole advisor to the sellers in this transaction.
For more information, visit www.geseaco.com.
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