Maersk Inc., a subsidiary of the A.P. Moller-Maersk Group, announced today that it has entered into an agreement to sell its subsidiary Maersk Equipment Services Company, Inc. d/b/a. Direct ChassisLink, Inc. ("DCLI" or the "Company") to the private investment firm, Littlejohn & Co., LLC.
The transaction is expected to be completed in March of 2012, subject to regulatory approvals and satisfaction of customary closing conditions. The transaction will have no impact on the Group's result for 2012.
DCLI rents and leases chassis to drayage companies and steamship lines in the United States. The Company owns or leases approximately 66,000 chassis through a network of 129 locations strategically located on or near key ports and other intermodal hubs in the United States.
"The A.P. Moller-Maersk Group's strategy is to build on its strong presence in shipping, energy and related activities. We have been pleased with the business levels, the profitability and the quality of management at DCLI. It is, however, a provider of chassis, and it does not fit in our long-term strategic focus. The sale will allow the Group to reallocate resources to the strategic focus areas within shipping, energy and related activities," stated J. Russell Bruner, Chairman and CEO of Maersk Inc.
Littlejohn managing director Edmund J. Feeley said, "Due to its leadership position, DCLI is uniquely positioned to service the strict requirements of ocean carriers, dray operators and railroads and is a critical link in the nation's intermodal network."
"The Company maintains a strong industry reputation by providing its customers with the highest level of fleet equipment quality, the broadest national network of start-stop locations and a competitive cost structure. As an independent company, we look forward to supporting DCLI's management team to grow the business organically and target strategic acquisitions that will further expand its national network," Feeley continued.
Littlejohn & Co. is a Greenwich, Connecticut-based private equity firm focused on investing in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth that can benefit from its operational and strategic approach. The firm is currently investing from Littlejohn Fund IV, L.P., which has over $1.3 billion in capital commitments.
The transaction is expected to be completed in March of 2012, subject to regulatory approvals and satisfaction of customary closing conditions. The transaction will have no impact on the Group's result for 2012.
DCLI rents and leases chassis to drayage companies and steamship lines in the United States. The Company owns or leases approximately 66,000 chassis through a network of 129 locations strategically located on or near key ports and other intermodal hubs in the United States.
"The A.P. Moller-Maersk Group's strategy is to build on its strong presence in shipping, energy and related activities. We have been pleased with the business levels, the profitability and the quality of management at DCLI. It is, however, a provider of chassis, and it does not fit in our long-term strategic focus. The sale will allow the Group to reallocate resources to the strategic focus areas within shipping, energy and related activities," stated J. Russell Bruner, Chairman and CEO of Maersk Inc.
Littlejohn managing director Edmund J. Feeley said, "Due to its leadership position, DCLI is uniquely positioned to service the strict requirements of ocean carriers, dray operators and railroads and is a critical link in the nation's intermodal network."
"The Company maintains a strong industry reputation by providing its customers with the highest level of fleet equipment quality, the broadest national network of start-stop locations and a competitive cost structure. As an independent company, we look forward to supporting DCLI's management team to grow the business organically and target strategic acquisitions that will further expand its national network," Feeley continued.
Littlejohn & Co. is a Greenwich, Connecticut-based private equity firm focused on investing in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth that can benefit from its operational and strategic approach. The firm is currently investing from Littlejohn Fund IV, L.P., which has over $1.3 billion in capital commitments.