| Dear Limited Partner,
We are pleased to announce that on March 19, 2019, MIP III reached financial close on the acquisition of NYK Line’s 51% interest in NYK Terminals (henceforth known as “Ceres”) for a purchase price of $102 million. MIP III now owns 100% of Ceres, after originally acquiring 49% of Ceres in 2015 as part of its investment in NYK Ports.
Ceres provides container, cruise, roll-on roll-off and breakbulk stevedoring in more than 15 ports across North America. The company currently derives the majority of its EBITDA from long-term joint ventures with shipping line partners in Houston, New Orleans and Montreal. Ceres also has large operations in key Southeast gateway ports, including Savannah, Jacksonville and Charleston, as well as North America’s major cruise ports. Following financial close, Ceres will have its own dedicated management team and will focus on organic growth opportunities and bolt-on acquisitions to increase EBITDA over time.
The acquisition was funded with a new debt facility at Ceres, with no equity required from MIP III to complete the transaction. The acquisition was completed at approximately 5x estimated 2019 EBITDA.
MIP III’s joint venture with NYK Line (51% NYK / 49% MIP III) will continue to hold YTI (large container terminal in Los Angeles) as well as a 20% interest in Maher Terminals (New York harbor) and a 20% economic interest in Oakland International Container Terminal in Oakland, California.
Should you have any questions concerning these events or MIP III’s investments, strategy or performance, please do not hesitate to contact us at mip.
Sincerely,
Macquarie Infrastructure Partners Inc. |
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