The U.S. Department of Justice has cleared the sale of Horizon Lines’ Hawaii business to The Pasha Group.
According to Horizon Lines, the premerger waiting period was granted early termination by the Department’s Antitrust Division effective April 21, 2015, clearing the way for the closing of the sale by the end of the company’s second quarter.
Horizon Lines announced the sale of its Hawaii division – with Jones Act service between the U.S. mainland and Hawaii – to The Pasha Group in November 2014 for $141.5 million. The deal included all of Horizon Lines’ trade-lane business and four Jones Act containerships.
At the same time as The Pasha Group announcement, Horizon Lines also announced the sale of its Alaska business to Matson, Inc. and the termination of its long-standing U.S mainland to Puerto Rico service, meaning the end of the road for the nation’s once leading domestic ocean cargo carrier.
Horizon Lines’s U.S mainland to Puerto Rico service was ended in January 2015, which was followed closely by the termination of its San Juan terminal services in the first quarter of this year. Horizon Lines has since sold its San Juan container terminal assets and assigned its lease with the Puerto Rico Ports Authority to Luis Ayala Colon Sucrs. The termination of service was blamed on continuing losses without the prospect of future profitability.
The sale to Matson is expected to close following the completion of the sale to The Pasha Group.
The Pasha Group is a family-owned global logistics and transportation services company with operations spanning the maritime, automative, relocation and logistics industries.