GWI UK to acquire Pentalver Transport
Written by Kyra Senese, Managing Editor
Business Wire
GWI UK Acquisition Company Limited, a subsidiary of Genesee & Wyoming Inc. (GWI), has entered an agreement with a subsidiary of APM Terminals (A P Møller-Maersk A/S) to acquire Pentalver Transport Limited for approximately £87 million (approximately US$110 million).
The transaction is expected to close in the first quarter of 2017 and is subject to closing adjustments, representatives say.
Pentalver currently operates off-dock container terminals, most of which are said to be under long-term leases and are located at each of the four major local seaports and a terminal located at Cannock, in the U.K. Midlands.
Pentalver also offers a trucking haulage service using more than 150 trucks, which provide daily service between the Felixstowe and Southampton seaports and the inland terminal at Cannock. Pentalver provides services catering to container maintenance and repair, as well.
Joe Nicklaus Nielsen, APM Terminals vice president and head of port investment said, “This divestment is in line with APM Terminals’ strategy to develop and optimize our portfolio of businesses. Pentalver is a successful business, and we are pleased to have found a new strong owner in [GWI]. Together with existing management and the around 600 dedicated employees of Pentalver, [GWI] is an excellent new owner that will provide the right platform for customers going forward.”
GWI UK believes the acquisition of Pentalver will allow the company to improve its U.K. services by providing transportation solutions and offering storage options at the ports. The acquisition is also expected to bring added efficiencies through shared services and Pentalver’s trucking fleet and Freightliner’s fleet of about 250 trucks that currently provide local collection and delivery service from Freightliner’s inland terminals.
Pentalver’s current managing director, Chris Lawrenson, will continue to oversee the company and is set to function as part of GWI’s U.K./Europe Region, managing about 600 employees.
“The acquisition of Pentalver is an excellent strategic fit with our existing intermodal offering in the U.K. With the advent of larger container ships and the growth of distribution centers in the Midlands and throughout the U.K., our maritime intermodal customers are seeking greater service optionality, which includes not only rail and road transportation but also the ability to store, maintain and position containers,” said Jack Hellmann, president and CEO of GWI. “Amidst the dramatic changes that are structurally altering the global shipping industry, we are pleased to be enhancing our service capabilities to meet the long-term needs of our intermodal customers in the U.K. In addition, we are excited to welcome Pentalver’s employees to GWI as we work together with our existing Freightliner subsidiaries to provide the safest, most reliable and efficient transportation services to the U.K. maritime intermodal market.”
