Littlejohn Sells Direct ChassisLink to EQT
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Littlejohn Sells Direct ChassisLink to EQT

DCLI nf1EQT Partners, through its EQT Infrastructure II Fund, has agreed to acquire Direct ChassisLink, a provider of marine chassis to the container shipping industry, from Littlejohn & Co.

dcli nf33Direct ChassisLink (DCLI) has a fleet of approximately 120,000 marine chassis that are used to carry shipping containers to and from ships in port to intermodal hubs for long haul transport by rail or truck. DCLI’s customers consist of container shipping companies, railroads, motor carriers, 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. DCLI also manages approximately 92,000 domestic containers owned by third parties through its REZ-1 asset management platform. The company is headquartered in Charlotte (www.dcli.com).

DCLI was originally formed in 1988 as Maersk Container Service Company, and operated as a subsidiary of Maersk until March 2012 when it was acquired by Littlejohn & Co. DCLI’s management team, led by CEO Bill Shea, will remain with the company under EQT ownership.

“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,” said Mr. Shea.

eqt nf55EQT Partners invests in medium sized companies operating in a range of industries in Northern Europe, Eastern Europe, China and the US. The acquisition of DCLI represents EQT’s seventh infrastructure investment in North America and the second investment in the US port sector. The firm is based in Stockholm with other offices in Copenhagen, Helsinki, Oslo, Frankfurt, Munich, New York, Shanghai, Hong Kong and Warsaw (www.eqt.se).

EQT Infrastructure II is a €1.9 billion ($2.1 billion) fund that invests 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.

alex darden nf1“EQT has 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,” said Alex Darden, a partner at EQT.

Littlejohn makes control and non-control investments in middle-market companies that are undergoing a fundamental change in capital structure, strategy, operations or growth.  The firm invests from $50 million to $150 million of equity in middle market companies that have annual revenues of $100 million to $800 million.  Littlejohn invests across a range of industries and acquires manufacturers, distributors, and service providers.  The firm is currently investing from Littlejohn Fund V, L.P., which has $2 billion in capital commitments.  Littlejohn is based in Greenwich, CT (www.littlejohnllc.com).

EQT Infrastructure was advised by Scott-Macon (www.scott-macon.com); Weil, Gotshal & Manges (www.weil.com); KPMG (www.kpmg.com); Bain & Company (www.bain.com); West Monroe Partners (www.westmonroepartners.com); and Marsh (www.mmc.com).

Littlejohn and DCLI were advised by Harris Williams & Co. (www.harriswilliams.com); Stifel, Nicolaus & Company (www.stifel.com); and Morrison Cohen (www.morrisoncohen.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 5-18-16

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