Mariners Rescued from Disabled Barge Off Rhode Island
Three mariners were rescued from a disabled barge off the coast of Point Judith, Rhode Island on Wednesday after their tug sank. The U.S. Coast Guard reports that watchstanders at...
Independent containership owner and operator Season Corporation has announced its acquisition of the remaining shares Greater China Intermodal Investments, which will significantly increase the company’s earnings per share, Seaspan announced Tuesday.
Under the deal, Season is acquiring the remaining 89% of GCI that it does not already own from affiliates of The Carlyle Group and other minority shareholders.
The deal has an implied enterprise value $1.6 billion.
GCI’s fleet consists of 18 modern “eco-class” containerships of 10,000 TEU and 14,000 TEU, representing a total of 204,000 TEU. Of the eighteen vessels, sixteen are currently on-the-water while the remaining two are newbuilds vessels scheduled for delivery during the second quarter of 2018.
Seaspan has been involved in the design, construction, delivery and operations of all 18 of GCI’s vessels since inception. All of these vessels are sister ships to Seaspan’s current fleet. Given Seaspan’s operating history of GCI’s fleet, there is no operational integration risk, the company said.
“GCI’s current fleet will contribute approximately $1.3 billion towards Seaspan’s contracted future revenues, increasing Seaspan’s total contracted future revenues to approximately $5.6 billion. In calendar year 2019, with an 18 vessel fleet, GCI is expected to generate $185 million to $200 million in annual EBITDA,” the company said in a press release announcing the acquisition.
Bing Chen, President and Chief Executive Officer of Seaspan, stated, “This significantly accretive acquisition materially increases our contracted future revenues and enhances our ability to provide our customers with modern, state-of-the-art containerships. With GCI’s fleet now under our ownership, we are strengthening our partnerships with customers and enhancing our scalable integrated platform for sustained growth and future consolidation. As the container shipping industry is beginning to show signs of a recovery, we are taking decisive actions to capitalize on compelling opportunities in our market.”
In the same press release Seaspan said it has reached agreements with Fairfax Financial Holdings on the investment of an additional $250 million in Seaspan’s debentures and warrants. The new investment increases the Fairfax’s total investment in Seaspan to $500 million.
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