Hong Kong-headquartered Seaspan has cemented its place as the world’s largest containership owner operator after completing the acquisition of Greater China Intermodal Investments from Carlyle Group affiliates and minority owners.
Previously Seaspan had an 11% stake in GCI, before the latest purchase of the remaining shares for US$380m. It sourced the capital for the purchase from its own balance sheet, plus a $100m credit facility from Citi and a $16m reinvestment by the Washington family. A new $250m investment by Fairfax Financial Holdings will also facilitate the purchase.
Bing Chen, president and chief executive 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.”
GCI’s fleet of 18 containerships is comprised of 10,000 teu and 14,000 teu eco-class vessels, representing a total of 204,000 teu. Of these 18 vessels, there are currently 16 on-the-water vessels with the remaining two newbuild 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.
GCI’s current fleet will contribute approximately $1.3bn towards Seaspan’s contracted future revenues, increasing Seaspan’s total contracted future revenues to approximately $5.6bn. In calendar year 2019, with an 18 vessel fleet, GCI is expected to generate $185m to $200m in annual EBITDA.