Horizon Lines to be acquired by Matson

Horizon Lines announced that it has entered into two separate and definitive agreements with The Pasha Group, a global logistics and transportation services company, and Matson for the acquisition of its business.

Under the agreement with Matson, the company will acquire all outstanding shares of Horizon Lines for $0.72 per share in an all-cash transaction. 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.

The second agreement will see Pasha Group acquire Horizon Lines’ Hawaii trade lane business, prior to closing of the Matson agreement, for approximately $141.5m 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 $598m 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.

Steve Rubin, President and Chief Executive Officer of Horizon Lines, Inc., said, “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 stated that it would shut down its Puerto Rico domestic liner service. The decision to terminate its Puerto Rico service is independent of the Pasha Group and Matson transactions.


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