Genesee & Wyoming to acquire Pentalver Transport, expand UK intermodal logistics
Pentalver operates off-dock container terminals strategically placed at each of the four major seaports in the UK.
Genesee & Wyoming Inc. (G&W), Darien, Conn., and its subsidiary, GWI UK Acquisition Co. Ltd., entered into an agreement with a subsidiary of APM Terminals (a subsidiary of A P Møller-Maersk A/S) to purchase Pentalver Transport Ltd. for approximately $110 million. The transaction is expected to close in the first quarter of 2017.
Headquartered in Southampton, UK, Pentalver operates off-dock container terminals strategically placed at each of the four major seaports of Felixstowe, Southampton, London Gateway and Tilbury, as well as an inland terminal located at Cannock in the UK Midlands, near many of the nation’s largest distribution centers. In addition to providing storage for loaded and empty containers on over 100 acres of land, Pentalver operates a trucking haulage service with more than 150 trucks, providing daily service between the seaports of Felixstowe and Southampton and its inland terminal at Cannock. Pentalver also provides services related to container maintenance and repair, including refrigerated containers.
Pentalver’s operations are complementary to those of G&W’s Freightliner subsidiary. G&W expects that the Pentalver acquisition will enable G&W to enhance its UK services by providing rail and road transportation solutions, as well as offering storage options at the ports and inland, and unlock efficiencies from shared services and enhanced asset utilization from Pentalver’s trucking fleet and Freightliner’s existing fleet of approximately 250 trucks that currently provide local collection and delivery haulage from Freightliner’s inland terminals. With approximately 600 employees, Pentalver will continue to be run by its current managing director, Chris Lawrenson, and will operate as part of G&W’s UK/Europe region.
“The acquisition of Pentalver is an excellent strategic fit with our existing intermodal offering in the UK,” says Jack Hellmann, president and CEO of G&W. “With the advent of larger container ships and the growth of distribution centers in the Midlands and throughout the UK, our maritime intermodal customers are seeking greater service optionality, which includes not only rail and road transportation but also the ability to store, maintain and position containers. Amidst the dramatic changes that are structurally altering the global shipping industry, we are pleased to be enhancing our service capabilities to meet the long-term needs of our intermodal customers in the UK. In addition, we are excited to welcome Pentalver’s employees to G&W, as we work together with our existing Freightliner subsidiaries to provide the safest, most reliable and efficient transportation services to the UK maritime intermodal market.”
“This divestment is in line with APM Terminals’ strategy to develop and optimize our portfolio of businesses,” adds Joe Nicklaus Nielsen, APM Terminals vice president and head of port investment. “Pentalver is a successful business, and we are pleased to have found a new strong owner in Genesee & Wyoming. Together, with existing management and the around 600 dedicated employees of Pentalver, Genesee & Wyoming is an excellent new owner that will provide the right platform for customers going forward.”