POST Online Media Lite Edition



 

Horizon Lines to be acquired by Matson for $0.72

Staff writer |
Horizon Lines has entered into definitive agreements with Matson and The Pasha Group. Matson will acquire all outstanding shares of Horizon Lines for $0.72 per share in an all-cash transaction.

Article continues below






The acquisition price represents a premium of approximately 89% over Horizon's closing stock price on November 10, 2014.

The Matson agreement has been unanimously approved by Horizon's Board of Directors and Horizon shareholders representing 55% of the fully diluted equity, which also represents 41% of the outstanding voting common stock on November 11, 2014, have agreed to vote their shares in support of the transaction.

Under the Pasha agreement, Pasha will acquire Horizon Lines' Hawaii trade lane business, prior to closing of the Matson agreement, for approximately $141.5 million in cash.

The proceeds from the Pasha transaction will reduce Horizon Lines' debt obligations prior to closing of the Matson transaction, at which time Matson will acquire all of the outstanding shares of Horizon Lines and repay the remaining debt outstanding at closing. The Pasha agreement has been unanimously approved by Horizon's Board of Directors.

As a result of the transactions, Matson, Inc. will acquire all of Horizon Lines' business operations, except for the Hawaii trade lane business. The two transactions taken together are valued at approximately $598 million on an enterprise value basis.

Matson will fund its transaction from available borrowings under its bank credit facilities and existing cash on hand. Pasha will fund its transaction from a committed debt financing agreement. There are no financing conditions to either transaction.


What to read next

Alaska's biggest crane arrives at Kodiak
Horizon confirms Ayala Colon deal for port facilities
Matson to acquire Span Alaska in $197.6m deal