Matson Logistics has reported that it has completed its previously announced acquisition of Span Alaska Transportation for a cash purchase price of $197.6m, on a debt and cash free basis.
The transaction expands Matson Logistics’ platform into freight forwarding in Alaska, reportedly making it the market leading provider of LCL freight consolidation and forwarding services to the state.
Matt Cox, president and CEO of Matson, stated, “As a subsidiary of Matson Logistics, this leading consolidation and forwarding business will retain the trusted Span Alaska brand and continue to be led by its experienced management team, independent of Matson’s ocean transportation operations.”
Matson expects to incur one-time pre-tax transaction closing and integration costs of approximately $4.0 to $5.0m in the second half 2016. Excluding, these one-time items, Matson expects the Transaction to be immediately accretive to earnings per share (“EPS”), providing annual EPS accretion of approximately $0.10 to $0.12.
Including the post-acquisition financial effects of the Transaction, Matson revised its expected Logistics segment operating income for the full year 2016 to be approximately $12m, excluding one-time transaction closing and integration costs.