A Swedish investment fund has agreed to acquire the third-largest terminal at L.A.-area ports from French shipping line CMA CGM for $817 million in cash, with plans to invest in equipment and technology upgrades.
EQT Infrastructure III fund, which is an arm of investment firm EQT Infrastructure, will own 90 percent of Global Gateway South at the Port of Los Angeles, the companies announced Monday. CMA CGM will retain a 10 percent stake in the terminal.
“The acquisition of GGS fits perfectly with EQT Infrastructure’s focused sector approach of targeting high-quality, well-located logistics assets with transformation potential,” Lennart Blecher, an investment advisor to the fund, said in a statement.
EQT said it has partnered with port infrastructure investment firm P5 Infrastructure to create a plan aimed at improving capacity and efficiency at GGS by investing in cranes, other handling equipment and technology.
The L.A. terminal operates under a long-term concession that runs through 2043 and is on track to handle more than 1 million containers this year, EQT said.
CMA CGM said the sale would help pay down its debt following its 2015 acquisition of Singapore shipping company Neptune Orient Lines for $2.4 billion. It acquired the L.A. terminal through that deal.
The EQT transaction is expected to close in the fourth quarter of 2017.
Manufacturing and trade reporter Shwanika Narayan can be reached at firstname.lastname@example.org. Follow her on Twitter @shwanika.
You May Also Like
- Investor Docks at Port
- CMA CGM Completes Port of L.A. Terminal Sale for $875 Million
- Key Deals: Global Gateway South Sells for $875 Million
- Terminal Consolidation Could Bring Sea Change
- Twin Ports, Two Records
- Food Importer-Exporter Plans to Chill Out at Port
- Bigger Cranes May Lift Port
- L.A. Port Numbers Down, Long Beach Up