Shipping Container Deal Will Produce One of the World's Biggest Box Lease Groups

CHINA – WORLDWIDE – Steady as she goes is the message given out to customers after the news Bohai Leasing has purchased Cronos Limited, the Bermuda based shipping container leasing group which it intends to eventually integrate into the Chinese company’s own box lease division Seaco. Despite the deal Cronos says all management currently in place will remain for the foreseeable future.

Both parties believe it will take time to optimise the strengths and synergies of the two organisations. To this end, there will be no immediate changes that would affect the external relationships presently maintained by Seaco and Cronos and envisage that the integration process will need to be carefully considered before instituting any changes.

The deal will mean that the combined group will own and manage 2,179 million TEU making it one of the world’s largest container fleets. Bohai says the company will have the most diversified container leasing fleet in the industry, with both the largest reefer and specials fleet within its wide portfolio of equipment. The acquisition was originally agreed in November when Global Sea Containers, a Bohai subsidiary agreed to purchase 80% of shares in Cronos Ltd. The total contract value, which includes Bohai taking on $25.88 million of the company's debt, is around $610 million and was to be paid in cash.

Money for the deal came from funds managed by Kelso & Co and the Transportation Capital Group. Hong Kong and Bohai says it is committed to growth through quality asset based acquisitions that complement its existing businesses and is delighted to have acquired this world class leasing company. Bohai Leasing, a subsidiary of the HNA Group, is a China based public company listed on the Shenzhen stock exchange. It owns and manages leasing companies and investments in aircraft, ships, containers, infrastructure, commercial property, medical equipment, automobiles, high-end equipment and other specialised lending and leasing businesses