The CMA CGM Group has completed the sale of a 90 percent equity interest in Global Gateway South Terminal at the Port of Los Angeles, the French shipping company has confirmed.
On Dec. 1, CMA CGM transferred the equity interest to Netherlands investment company EQT Infrastructure III and its partner P5 Infrastructure (P5) for an enterprise value of $875 million.
As part of the deal, CMA CGM received a cash consideration of about $820 million, the parties say. Also under the agreement, CMA CGM will remain a minority shareholder with a 10 percent stake in the GGS terminal and will continue to be a major user of the facility under a long-term contract.
GGS, the third-largest terminal in the Port of Los Angeles in terms of capacity, operates under a long-term concession that runs through 2043. The terminal provides intermodal container handling services to shipping lines including stevedoring, intermodal/truck services, storage and maintenance, and is on track to handle over one million containers in 2017, according to port statistics.
EQT Infrastructure and P5 say they have developed a plan to transform GGS into even more of a leading North American terminal in terms of capacity and efficiency. The outlined strategy includes capital investments in handling equipment and technology.
“We are very pleased to partner with EQT Infrastructure,” CMA CGM Executive Officer Farid Salem said in a statement. “Together we will develop GGS into a world class terminal company.”
The transaction, CMA CGM and EQT Infrastructure said, is expected to close by the end of the year.
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