GWI UK Acquisition Company Limited, a subsidiary of Genesee & Wyoming Inc. (G&W), has entered into an agreement with a subsidiary of APM Terminals to purchase all of the issued share capital of Pentalver Transport Limited, headquartered in Southampton, U.K., for approximately US$110 million.
The acquisition is subject to final working capital and other closing adjustments, and is also subject to satisfaction of customary closing conditions, including the receipt of competition clearances and the finalization of certain lease agreements. The transaction is expected to close in the first quarter of 2017. Pentalver will continue to be run by its current Managing Director, Chris Lawrenson, and will operate as part of G&W’s U.K./Europe Region.
Pentalver operates off-dock container terminals (most under long-term lease) located at each of the four major seaports of Felixstowe, Southampton, London Gateway and Tilbury, as well as an inland terminal located at Cannock, in the U.K. Midlands. The company provides storage for containers on more than 100 acres of land and also operates a trucking haulage service. It also provides services related to container maintenance and repair (including refrigerated containers).
“The acquisition of Pentalver is an excellent strategic fit with our existing intermodal offering in the U.K.,” said Jack Hellmann, G&W president and CEO. “With the advent of larger container ships and the growth of distribution centers in the Midlands and throughout the U.K., our maritime intermodal customers are seeking greater service optionality, which includes not only rail and road transportation but also the ability to store, maintain and position containers. Amidst the dramatic changes that are structurally altering the global shipping industry, we are pleased to be enhancing our service capabilities to meet the long term needs of our intermodal customers in the U.K.”
“In addition, we are excited to welcome Pentalver’s employees to G&W as we work together with our existing Freightliner subsidiaries to provide the safest, most reliable and efficient transportation services to the U.K. maritime intermodal market,” added Hellmann.
G&W’s Freightliner subsidiary is the largest provider of maritime container transportation by rail in the U.K. G&W expects that the Pentalver acquisition will enable G&W to enhance its U.K. services by providing rail and road transportation solutions, as well as offering storage options at the ports and inland. The company also expects to unlock efficiencies from shared services and enhanced asset utilization from Pentalver’s trucking fleet and Freightliner’s existing fleet of approximately 250.
“This divestment is in line with APM Terminals’ strategy to develop and optimize our portfolio of businesses,” said Joe Nicklaus Nielsen, APM Terminals vice president and head of Port Investment. “Pentalver is a successful business, and we are pleased to have found a new strong owner in Genesee & Wyoming. Together with existing management and the around 600 dedicated employees of Pentalver, Genesee & Wyoming is an excellent new owner that will provide the right platform for customers going forward.”