Carlyle sells Horizon Lines
The Carlyle Group today announced that it has entered into a definitive agreement to sell Jones Act containership operator Horizon Lines, to private equity firm Castle Harlan for a purchase price of $650 million. Carlyle acquired Horizon Lines, formerly known as CSX Lines, from CSX Corp. in a recapitalization transaction, which was completed in February 2003.
Based in Charlotte, North Carolina, Horizon Lines is America's largest domestic-flag ocean transportation company, with 16 vessels providing ocean transportation and logistics services from the U.S. mainland to Alaska, Hawaii / Guam, and Puerto Rico. Horizon Lines is the only vessel operator to serve all three of the major Jones Act trades.
Carlyle Managing Director and head of the automotive and transportation group, Greg Ledford, said, "Our investment in Horizon Lines exemplifies how private equity can serve as a catalyst for value creation. Partnering with an exceptional management team, led by Chuck Raymond, we've helped to establish Horizon Lines as a truly independent and stand alone company. Horizon Lines has generated outstanding results for our investors while continuing to deliver superlative service for its customers."
Horizon Lines Chairman and CEO Charles G. (Chuck) Raymond commented, "Horizon Lines is the latest example of how independence can foster innovation, growth and value. Carlyle has served as an excellent financial partner in establishing Horizon Lines as an independent company and the premier brand in domestic container shipping. We very much look forward to working with the investment professionals at Castle Harlan as we continue to build our company and capabilities."
Castle Harlan Managing Director Marcel Fournier explained, "We've been impressed with the results that Horizon Lines has achieved over the last several years and are excited about the company1s prospects. We look forward to working with the management team to take Horizon Lines to the next level of profitability and success."
Goldman, Sachs & Co. and Latham & Watkins LLP advised Carlyle on the transaction.