EQT Infrastructure II to acquire DCLI, one of the largest US providers of marine chassis to the shipping industry

  • DCLI provides essential transportation assets and services to the world’s largest container shipping companies and railroads in the US
  • EQT Infrastructure II is committed to supporting the continued development of DCLI through organic and acquisitive growth strategies

The EQT Infrastructure II Fund (“EQT Infrastructure”) has agreed to acquire Direct ChassisLink Inc. (“DCLI” or the “Company”), one of the largest US providers of marine chassis to the container shipping industry, from Littlejohn & Co. (“Littlejohn”), a Greenwich, CT based private equity firm. DCLI’s management team, led by industry veteran and CEO, Bill Shea, will remain with the Company and continue to lead its growth.

DCLI has a fleet of approximately 120,000 marine chassis in the US. Chassis are an essential part of the transportation value chain and are used to carry containers to and from ships in port and local destinations or intermodal hubs for long haul transport by rail or truck, as well as for last mile distribution. DCLI’s customers consist primarily of container shipping companies, railroads, motor carriers, beneficial cargo owners, and other logistics companies who use DCLI’s chassis under long-term contracts. In total, DCLI serves approximately 3,300 customers across approximately 375 active rental locations. In addition, DCLI manages approximately 92,000 domestic containers owned by third parties through its differentiated asset management platform, REZ-1.

“EQT Infrastructure funds have experience investing in the port sector in both Europe and North America. We have continued to look for other angles through which to invest in the companies and assets that benefit from the underlying macroeconomic trends that are increasing demand for transportation infrastructure. DCLI’s chassis fleet plays an essential role in the shipping value chain as an indispensable link between ships, ports, rail, and the container’s final destination. We believe DCLI is well positioned to benefit from increasing container volumes and has the potential to transform into a stronger and more diversified intermodal platform,” says Alex Darden, Partner at EQT Partners Inc., Investment Advisor to EQT Infrastructure.

“We are excited to further grow the business with the support of EQT and their team of experienced industrial advisors. Over the past four years, we have more than doubled the size of the business since we acquired it from Maersk, and we see significant growth potential in adjacent markets and through the REZ-1 platform,” says Bill Shea, CEO.

“I have been impressed with DCLI’s management team and their strategic vision for the future of the business. They have developed an industry leading platform with multiple attractive growth avenues. I look forward to working with the professional management team, the Board, and EQT in growing and transforming the business,” says Michael E. Moore, Industrial Advisor to EQT who will assume the position of Chairman in conjunction with the acquisition.

The acquisition of DCLI represents EQT’s seventh infrastructure investment in North America and the second investment in the US port sector, and is a result of EQT Infrastructure’s strong North American practice and dedication to continued pursuit of opportunities in the region. The transaction is expected to close during the second quarter of 2016 following customary antitrust approval.

EQT Infrastructure was advised by Scott-Macon, Ltd., Weil, Gotshal & Manges LLP, KPMG LLP, Bain & Company, Inc., West Monroe Partners, LLC, and Marsh LLC.

Littlejohn and DCLI were advised by Harris Williams & Co, Stifel, Nicolaus & Company, Incorporated and Morrison Cohen LLP.

Contacts

Alex Darden, Partner at EQT Partners, Investment Advisor to EQT Infrastructure II, +1 917 281 0840
Kerstin Danasten, EQT Press Contact, +46 8 506 55 334

About EQT

EQT is a leading global private equity group with approximately EUR 29 billion in raised capital. EQT has portfolio companies in Europe, Asia and the US with total sales of more than EUR 17 billion and approximately 140,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

EQT Infrastructure II is a EUR 1.9 billion fund investing in medium-sized infrastructure businesses in the Nordic region, parts of Continental Europe, and North America. Investment targets are regulated infrastructure, concession-based infrastructure, market-based infrastructure and services businesses with infrastructure characteristics.

For further information, please visit www.eqt.se

About DCLI

Direct ChassisLink is a leading provider of equipment and asset management services to the U.S. intermodal industry. DCLI provides chassis leasing and chassis / container management services to container shipping companies, railroads, terminal operators, logistics companies, motor carriers and beneficial cargo owners through its advantaged network, information technology, and field management organization. DCLI was originally formed in 1988 as Maersk Container Service Company, and operated as a subsidiary of Maersk until early 2012.

For further information, please visit www.dcli.com

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About Us

EQT is a leading investment firm with approximately EUR 50 billion in raised capital across 27 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

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