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US Castle Harlan buys shipping company from Carlyle for $650m

Castle Harlan has agreed to buy Horizon Lines, the shipping container company currently owned by Carlyle Group. The transaction has been valued at $650m.

'This is an outstanding company with solid growth prospects,' said Marcel Fournier, the Castle Harlan managing director who led the negotiations. 'It has a highly stable revenue base, well diversified cargo shipments and a stable core of strong customers.'

Carlyle acquired Horizon from CSX Corporation in February 2003. The company handles more than a third of marine container shipments between the US mainland and ports of Hawaii, Guam, Alaska and Puerto Rico and has generated fiscal 2003 revenue of more than $830m.

'Horizon has an exceptionally strong and experienced management team that will continue with the company,' Fournier added. 'At Castle Harlan, we look forward to building on the firm foundation that was established over many years by CSX and continued by Carlyle, and helping the company move to the next level of profitability and success.'

Castle Harlan acquired Caribbean Restaurants, operator of 165 Burger King restaurants in Puerto Rico, for $340m earlier this month. The firm closed its latest fund on nearly $1.2bn in September last year.

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