December 12, 2017
Paris and New York offices represent CMA CGM, the world’s third-largest container shipping company in transaction; purchase price sets the enterprise value of APL Limited at $875 million.
On December 1, Willkie client CMA CGM, the world’s third-largest container shipping company, announced it has completed its previously announced agreement to sell a 90 percent stake in APL Limited (APL) to the EQT Infrastructure III fund. APL owns Eagle Marine Services, Ltd., the concession company that operates Global Gateway South (GGS), a leading container terminal in the Port of Los Angeles. The purchase price sets the enterprise value of APL at $875 million. As part of the sale, CMA CGM entered into a long-term volume and call commitment and terminal services agreement, which will allow APL to retain CMA CGM and certain of its subsidiaries as GGS’s largest customer. The deal was announced on June 30, 2017
The Port of Los Angeles, together with the Port of Long Beach, form the largest gateway in North America for growing transpacific trade flows. GGS is the third largest terminal in the Ports of Los Angeles and Long Beach in terms of capacity, and operates under a long-term concession that runs through 2043. The terminal provides intermodal container handling services to shipping lines including stevedoring, intermodal/truck services, storage and maintenance. GGS benefits from a waterfront location and berth depth that enables the terminal to accommodate the latest and future generations of large container ships.
Willkie’s Paris and New York offices advised CMA CGM with teams led by partners Daniel Hurstel, Annette Peron and Russell Leaf, counsel Jared Fertman, associates David Lambert, Jeffrey Daniel, James Rosenthal, Thomas Saint-Loubert-Bie and Liza Scemama, and law clerk Matthew Gibson on corporate aspects; partner Anthony Carbone and associate Edward Torres on tax matters; and national partner Brice Pommiès and partner Jeffrey Goldfarb on financing. Antitrust matters were handled by national partner Adrien Giraud and counsel Jonathan Konoff. Willkie’s Washington office also took part in the transaction, with CFIUS matters handled by counsel Russell Smith and associate Noman Goheer and environmental matters handled by counsel William Thomas and associate Annise Maguire. Partners Jeffrey Clark and David Mortlock and associate Benjamin Shapiro assisted in FCPA and OFAC matters. Counsel Jeffrey Clancy assisted in insurance matters.
