The Carlyle Group, Tiger Group partner with Seaspan, other investors to acquire more than US$5B in container, dry bulk, tanker vessels, other shipping assets to capitalize on increasing demand in shipping sector
HONG KONG and WASHINGTON
March 14, 2011
– A new joint venture of global shipping and finance experts has formed a company that will work to acquire more than $5 billion in container, dry bulk, tanker vessels and other shipping assets to capitalize on increasing demand in the shipping sector. The company will commence business immediately and expects to deploy up to $900 million in equity capital during the next five years. Additional financial terms were not disclosed.
The new company is formed by The Carlyle Group and Tiger Group Investments in partnership with Seaspan Corporation, the Washington Family, Gerry Wang and Graham Porter. The company will primarily focus on bringing together Chinese shipbuilders, lenders and state-owned companies to support China’s desire to increase the amount of cargo it controls. The company will be led by Gerry Wang and Graham Porter, who together have more than 50 years experience in the shipping industry and finance, primarily in Asia.
Seaspan Corporation, along with Tiger’s long-term partners, the Washington Family, will solely invest in container vessels purchased by the newly-formed company.
Mr. Wang said, “There is increasing desire among Chinese state-owned entities to control the ships that transport their goods around the world. We are confident that our long-standing relationships amongst the world’s shipbuilders, charterers and financiers, particularly in the PRC, will allow us to continue to successfully execute our growth model. We are excited to partner with The Carlyle Group, whose remarkable global platform and relationship network adds an important means of value creation as we source and execute transactions.”
Greg Ledford, Managing Director and head of Carlyle’s Industrial and Transportation team, said, “This is a creative solution that combines Carlyle’s extensive transportation experience and established Asia business with the shipping expertise and leadership of Gerry and Graham.”
Yi Luo, Managing Director of Carlyle’s Asia Buyout group, said, “We believe there is a compelling opportunity to serve Asia’s continuing growth in demand for shipping capacity and are pleased to partner with Gerry and Graham, who have a track record of success in the region.”
Carlyle’s equity contribution will come from Carlyle Partners V and Carlyle Asia Partners III.
Deutsche Bank served as exclusive financial advisor to Carlyle and Tiger in establishing the joint venture. Latham & Watkins LLP served as counsel to Carlyle, and Shearman & Sterling LLP served as counsel to Tiger, in connection with the transaction.
* * * * *
About Tiger Group Investments
Tiger Group Investments is an Asian based private investment firm, focused primarily on the maritime sector, with a proven track record of creating value in its businesses, throughout the business cycle, while taking advantage of considerable knowledge of the financial markets to maximize shareholder value. Tiger Group Investments has investments in Seaspan Corp, Greathorse Shipping Holdings Ltd, SeaTiger Capital, Seabridge Marine and two ship managers. As of 31 January 2011, Tiger Group Investments managed assets in excess of US$7 billion. Web: www.tigergroup.hk