Mark Szakonyi | Aug 01, 2011 12:45PM EDT
General Electric and a partner sold shipping container lessor GE SeaCo to HNA Group and Bravita Capital for $1.05 billion, as the Chinese transportation group grows its container shipping portfolio.
The sale of the owner and manager of more than 870,000 20-foot equivalent units will give General Electric about $500 million, while its partner, SeaCo., will get about $528 million. The deal is part of General Electric’s restructuring, following its loss of billions of dollars during the recession.
"This acquisition fits precisely into HNA's strategic plans to quickly grow our logistics and transport business," said Adam Tan, executive director of HNA, which owns major Chinese airline Hainan Airlines. "Our company currently owns and operates China's fourth largest port, a fleet of 30 container ships and a container ship finance arm."
The acquisition is funded by a combination of equity and debt. Hong Kong-based Bravia Capital is a private equity and advisory firm concentrated on transportation and logistics investment.
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