HONOLULU (HawaiiNewsNow) - Saddled by debt and sailing the oldest fleet in Hawaii cargo service, Horizon Lines has liquidated, selling its Hawaii operations to The Pasha Group and its Alaska operations to Matson.
The two deals were concluded Friday, the buyers said in separate announcement issued minutes apart.
Pasha, sailing two ships to Hawaii from San Diego, acquires Horizon's four ships in Hawaii service, while Matson, with 25 ships before acquiring the Alaskan routes, serves Hawaii, Guam, Micronesia and China with its fleet. Matson said it would continue to serve Alaska with three ships as Horizon had, sailing to Anchorage, Kodiak and Dutch Harbor.
The Pasha Group has also acquired Horizon subsidiaries Hawaii Stevedores, Inc.; the California-based operations of Sea-Logix LLC, which provides trucking services; and Sunrise Operations, a subsidiary that includes Horizon's Hawaii trade-lane vessels and employees.
"Like Pasha Hawaii, these companies have strong ties to the Islands and the mainland, are aligned with our integrated shipping and logistics model, and share our values and community commitment," said Pasha CEO George Pasha IV.
Matson, in taking the routes to Alaska, paid $141.5 million, and assumed all non-Hawaii business liabilities, bringing the total value of the transaction to $469 million. Pasha did not immediately report what it paid.
"We are pleased to have complete this strategic acquisition," Matson CEO Matt Cox said. "The Alaska market is a natural geographic extension of our platform."
The Pasha Group, founded as a freight forwarding group aimed at military personnel, has been sailing a single vehicle carrier, the Jean Anne, to Hawaii, but in recent weeks took delivery on the Marjorie C, a new ship that can handle vehicles and containers.
Pasha sails here from San Diego but Horizon, with operations in Tacoma and Oakland, sailed here mostly from Los Angeles. Matson sails here from Seattle, Oakland and Long Beach, with some ships sailing on to Guam and to China, branding the straight-shot return trips as "the China Express."