MSC Mediterranean Shipping Co. said Monday that it has agreed to sell 35% of Terminal Investment Limited SA to Global Infrastructure Partners and a group of its LP co-investors. The sale price is US$1.929 billion, including certain payments contingent on TIL’s future performance. The deal is expected to close in the middle of the year. Terminal Investment Limited invests in, develops and manages container terminals around the world.
MSC Mediterranean Shipping Company S.A. (“MSC”) has reached agreement with Global Infrastructure Partners and a group of its LP Co-Investors (“GIP”) to sell 35% of Terminal Investment Limited SA (“TIL”). Consideration is US$1.929 billion, including certain payments contingent on TIL’s future performance. Closing is expected to take place in the middle of the year and is subject to obtaining the relevant approvals.
TIL has, or is in the process of acquiring, controlling or joint-controlling interests in 30 container terminals globally serving most of the world’s major trade routes and located in North and South America, Europe, Africa, the Middle East and Asia. TIL has grown rapidly over the last decade and is now the world’s sixth largest container terminal operator. TIL’s growth will continue to benefit from its relationship with MSC which is the world’s second largest container shipping company.
The new strategic partnership between MSC and GIP will provide a strong foundation to support the next phase of TIL’s growth, including further acquisitions and investments. GIP will play an active role with Alistair Baillie joining TIL as President.
Diego Aponte, Vice President of MSC, said: “We’re extremely pleased to have joined forces with GIP, one of the largest and most experienced infrastructure funds. Through this partnership we are reinforcing our terminal division, which will enable us to capitalize on future opportunities and growth. This will complement MSC’s strategy to maintain a leading position in the industry.”
Adebayo Ogunlesi, Chairman and Managing Partner of GIP commented: “We are delighted to enter into this exciting new partnership with MSC. This is in line with our strategy of developing best-in-class joint ventures with industry leaders. We expect to work closely with MSC in growing and improving this high quality portfolio of container terminal assets.”
About Global Infrastructure Partners
Global Infrastructure Partners (“GIP”) is an independent infrastructure investment fund with US$15 billion under management. GIP invests worldwide in infrastructure assets and businesses in both the OECD and select emerging market countries. GIP targets investments in single assets, and portfolios of assets and companies, in power and utilities, natural resources infrastructure, air transport infrastructure, seaports, freight railroad, water distribution and treatment and waste management. GIP has offices in New York, London and Colorado Springs, with an affiliate in Sydney and portfolio company operations headquarters in Stamford, Connecticut. For more information, visit www.global-infra.com.
GIP’s other port sector investments are a joint-controlling 27% interest in Port of Brisbane, Australia; 50% of International Trade Logistics in Buenos Aires, Argentina; and 100% of Great Yarmouth Port in the UK.
About MSC Mediterranean Shipping Company S.A.
MSC Mediterranean Shipping Company S.A. (“MSC”) of Geneva, Switzerland, is a privately owned shipping line, founded in 1970, which has rapidly grown to become the number two global container shipping line. During recent years MSC’s maritime fleet has expanded substantially and, as of mid-March 2013, was operating 446 container vessels with an intake capacity of over 2,200,000 TEUs. For more information, visit www.mscgva.ch.
About Terminal Investment Limited SA
Terminal Investment Limited SA (“TIL”) invests in, develops and manages container terminals around the world. It was founded in 2000 to secure berths and terminal capacity in the major ports used by MSC. Since then, TIL has grown to become one of the largest and most geographically diverse container terminal operators globally. TIL’s terminals have been selected for their important and strategic locations around the world, including major origin and destination and transshipment trade hubs and gateways in Europe, Asia, North America, South America and West Africa. For more information, visit www.tilgroup.com.
Advisors to MSC included Deutsche Bank, BNP Paribas and Freshfields Bruckhaus Deringer. Linklaters advised GIP.