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EQT Infrastructure to sell Fenix Marine Services to CMA CGM for an enterprise value of USD 2.3 billion

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  • Fenix Marine Services is a leading container terminal in the Port of Los Angeles
  • Under EQT Infrastructure’s ownership since 2017, Fenix Marine Services has been transformed into one of the largest and most efficient container terminals operating in the busiest port complex in the Western Hemisphere
  • A relentless focus on value creation and digitization have resulted in significant operational improvements, including a 20 percent increase in gross moves per hour, the leading indicator of marine productivity. Environmental upgrades have also eliminated over ten million pounds of greenhouse gases to date

EQT is pleased to announce that the EQT Infrastructure III fund (“EQT Infrastructure”) has agreed to sell its stake in Fenix Marine Services (“the Company”) to CMA CGM (“CMA”) for an enterprise value of USD 2.3 billion. CMA is the third largest global shipping line and a member of the leading Transpacific shipping alliance.

Fenix Marine Services is one of the largest terminals in the Port of Los Angeles and provides container handling services to shipping lines. The Company handles approximately 2.3 million TEUs (unit of cargo capacity) annually and employs more than 145 people.

Since acquiring Fenix Marine Services in December 2017, EQT Infrastructure has undertaken a series of initiatives to help position the platform for long-term success, including a management overhaul led by seasoned port executive Sean Pierce, featuring a dynamic team with deep global terminal operating experience and cutting-edge technological know-how. EQT Infrastructure also backed significant investments in new equipment and systems, including the largest cranes in North America. The Company introduced an extensive yard reconfiguration that increased terminal capacity by 40 percent, improved productivity, reduced turnaround time for truckers, and improved safety. EQT Infrastructure also supported the installation of automated gates and implementation of advanced inventory tracking systems, as well as the launch of innovative machine learning technology to optimize terminal operations. These efforts firmly established Fenix Marine Services as one of the leading digitized port operators in the world.

Demonstrating sustainability leadership in the Port of Los Angeles has also been a key focus for Fenix Marine Services. The Company converted its entire equipment fleet to renewable diesel, eliminating over ten million pounds of greenhouse gases to date, and is testing low-carbon hydrogen fuel cell technology with partners including Toyota.

Sean Pierce, CEO and President of Fenix Marine Services, said, “Our vision was always to deliver on operational excellence and to do things better than they have been done before. All employees at Fenix Marine Services, whether on the front line in Port of Los Angeles or at our back-office in Arizona, have been critical in delivering that vision. This transaction is a testament to the strength and fortitude of the team. We thank our partners at EQT for their unique, active support of the company throughout this journey”.

Alex Darden, Partner and Head of EQT Infrastructure’s US Advisory Team, added, “Fenix Marine Services plays an integral role in the complex North American supply chain. We have been proud to support its mission of operational excellence and capacity growth to best meet consumer needs both before and during a pandemic that has highlighted the importance of Port of Los Angeles as a critical trade gateway. It has been a pleasure to partner with Sean and the current management team, each of whom have done a fantastic job implementing our full potential plan, including an ambitious digitalization program and an industry-leading sustainability agenda. Today, Fenix Marine Services is one of the most efficient and environmentally friendly terminals in North America”.

EQT Infrastructure is confident that CMA is the right partner to continue this incredible progress, ensuring the terminal’s operational efficiency and fluidity to the benefit of the entire port community. The transaction closing is subject to customary regulatory approvals.

Rothschild & Co acted as exclusive financial advisor and Allen & Overy LLP acted as legal advisor to EQT Infrastructure.

US inquiries: Mathilde Milch, +1 917 510 6626, mathilde.milch@eqtpartners.com
International inquiries: EQT Press Office, +46 8 506 55 334, press@eqtpartners.com

About EQT
EQT is a purpose-driven global investment organization, focused on active ownership strategies. With a Nordic heritage and a global mindset, EQT has a track record of almost three decades of delivering consistent and attractive returns across multiple geographies, sectors and strategies. Uniquely, EQT is the only large private markets firm in the world with investment strategies covering all phases of a business’ development, from start-up to maturity. EQT today has more than EUR 70 billion in assets under management across 27 active funds within two business segments – Private Capital and Real Assets.

More info: www.eqtgroup.com
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About Fenix Marine Services
Fenix Marine Services in the Port of Los Angeles is one of the largest marine terminals in North America, spanning nearly 300 acres and 4,000 feet of the wharf. Fenix is in a prime location adjacent to the Port’s deep-sea channel and a ship-turning basin. The Fenix team achieves approximately 2.3 million TEUs annually.

More info: www.fenixmarineservices.com