Matson, Inc. and Horizon Lines, Inc. today announced that the two companies have entered into a definitive merger agreement pursuant to which Matson will acquire Horizon Lines¡¯ Alaska operations. Separately, Horizon Lines today announced that it has agreed to sell its Hawaii operations to The Pasha Group and also that it intends to shut down its Puerto Rico operations by the end of 2014.
Horizon Lines, previously known as Sea-Land, has been serving Alaska since 1964 and has an excellent reputation in the trade.  It currently operates three diesel-powered containerships in its Alaska service.  On closing, Matson plans to continue to deploy all three vessels in their current port rotation.  The vessels provide twice weekly service between Tacoma, Anchorage and Kodiak and weekly service to and from Dutch Harbor.  We will bring to this market the same high levels of operating discipline that have made us a leader in Hawaii and Guam, and a successful niche carrier in the highly competitive China trade.  The transaction represents a natural geographic extension of our platform as a leader serving customers in the Pacific, and we are excited by the long-term prospects of the Alaska trade lane, which mirrors Hawaii in many ways.
Overall, this growth opportunity will strengthen our position in serving U.S. domestic markets.  As a Hawaii-based corporation serving the Islands since 1882, Matson will continue to focus on delivering the best service possible for the state and continue to support ongoing investments for Hawaii.  Most notably, we are moving forward with the construction of two new ¡°Aloha¡± class containerships for our Hawaii service, representing an investment of over $400 million.   Similarly, Matson remains committed to continuing to provide Guam and Micronesia with a modern, reliable ocean transportation infrastructure and offering our China customers a premium, expedited service unparalleled in the trade.
The transaction requires regulatory and other approvals and probably won¡¯t close until sometime in 2015. Until then, it is business as usual and Matson and Horizon Lines will continue to operate as separate companies. Clearly, this is an exciting time for our Company, but it goes without saying that we will remain focused on living our mission:  To move freight better than anyone.
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