Span Alaska (NYSE: SNA) is the largest Alaska-based shipper and third largest Alaska-based trucker, with an extensive network of terminals and service centers throughout Alaska. Span is the exclusive carrier for the Port of Valdez and the largest private port in the state. Span also operates two Alaska-based trucking companies, Span Northstar and Span N.A.
The purchase price was a combination of cash paid for the business, $7.5 million in working capital, and the assumption of debt. Matson has used $50 million of its borrowing capacity under its revolving credit facility to fund the Transaction.
“We’re pleased to announce this transaction that significantly expands Matson Logistics’ platform and underscores our long-term commitment to the Alaska market,” said Matt Cox, President & CEO of Matson. “This leading consolidation and forwarding business will retain the trusted Span Alaska brand and continue to be led by its experienced management team, independent of Matson’s ocean transportation operations.
- 1. The Company expects to incur one-time pre-tax transaction closing and integration costs of approximately $
- 2.0 to $
- 3.0 million in the second half
- 4. Excluding these one-time items, the Company expects the Transaction to be immediately accretive to EPS, providing annual EPS accretion of approximately $
- 5.10 to $
- Excluding the post-acquisition financial effects of the Transaction, Matson expects Logistics to earn approximately $12 million for the full year 2016.
About MatsonMatson is a leading U.S. transportation provider that offers a vital lifeline to the economies of Hawaii, Alaska, Guam, Micronesia, and select South Pacific islands and operates a premium, expedited service from China to Southern California.
The Company’s fleet of 22 owned vessels includes containerships, combination container and roll-on/roll-off ships, and custom-designed barges. Matson Logistics, established in 1987, extends the geographic reach of Matson’s transportation network throughout the continental U.S.
A leading provider of integrated, asset-light logistics services, Rail Services includes rail intermodal, highway brokerage, warehousing, and less-than-container load freight consolidation and forwarding to Alaska.
Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects,” “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Forward-looking statements are based on current expectations and assumptions and involve known and unknown risks and uncertainties. Some factors could cause actual results, performance, or achievements to differ materially from those expressed or implied by the forward-looking statements. Such factors include, among others, the following:
We expect these statements to use words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “predict,” “project,” “would,” and similar expressions to relate to each Company or their respective management teams.
- 1. We expect the Transaction will be accretive to earnings per share in the first full year following completion, and we estimate that the total consideration received by our shareholders will be approximate $
- 2.5 billion, consisting of $
- 3.7 billion in cash and $
- 4.8 billion in shares of our common stock.
Matson, Matson Logistics, and Span Alaska must disclose material facts about the business, prospects, trends, and other matters that affect the Company or may be material to the business.
The risks and uncertainties associated with this acquisition could cause actual results to differ materially from those contemplated by the forward-looking statement.
- 1. Matson is currently undergoing an evaluation process by the requirements of Section 220 of the Sarbanes-Oxley Act of
- 2. Matson reviews its financial statements and accounting policies concerning such evaluation. We will continue cooperating with the SEC and expect the review to be completed by the end.
Matson is not obligated to update its forward-looking statements. It expressly disclaims any obligation to update its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
This announcement is a cautionary statement that speaks only about the date hereof. Do not rely on the forward-looking statements contained herein.
