November 12 - Horizon Lines has entered into definitive agreements with Matson and the Pasha Group, which will see Pasha acquire Horizon's Hawaii trade lane business and Matson acquire all outstanding shares in the company.
Pasha is to purchase Horizon's Hawaii trade lane business for USD141.5 million, while Matson will acquire all of the carrier's other business operations and pay the remaining debt outstanding at the closing of the sale.
"Matson has over 130 years of shipping experience and is guided by a rich history of integrity and innovation. Pasha is a third generation, family-owned business with a proud heritage of excellence and deep ties to the Hawaiian community. Both Matson and Pasha are well-positioned to serve our valued customers," said David N. Weinstein, chairman of the board of directors at Horizon.
Steve Rubin, president and ceo of Horizon, commented: "Our board and management team have been working diligently to improve Horizon Lines' financial and operational performance while continuing to provide superior service across all our trade lanes. These transactions are a direct reflection of those efforts, and will enable the proud heritage of Horizon Lines to be passed on to Matson and Pasha."
Horizon Lines also announced that it will cease operations and shut down its Puerto Rico domestic liner service.
The company says that its decision to terminate its Puerto Rico service is independent of the Pasha Group and Matson transactions, and it intends to cease operations between the US and Puerto Rico whether or not the transactions are finalised, which is scheduled for next year.
On July 24 of this year HLPFI reported that Crowley Maritime Corporation was in talks to acquire Horizon's facilities at the San Juan port, as well as its ships and routes to and from Puerto Rico.