Carlyle Closes Sale of Horizon Lines to Castle Harlan

Washington, DC — Global private equity firm The Carlyle Group today announced that it has closed its sale of Horizon Lines, the nation’s leading Jones Act container shipping company, to private equity firm Castle Harlan for a purchase price of $650 million. Carlyle acquired its interest in Horizon Lines, formerly known as CSX Lines, from CSX Corp. in February 2003 in a recapitalization transaction valued at $300 million.

Carlyle Managing Director and head of the automotive and transportation group, Greg Ledford, said, “Our experience with Horizon has been exemplary from start to finish. We’ve created tremendous value for our investors while helping to establish Horizon Lines as a truly independent and stand alone company. We wish Chuck Raymond and the Horizon team well as they take the company to the next level of profitability and success.”

Based in Charlotte, North Carolina, Horizon Lines is the nation’s largest ocean transportation company, with 16 vessels providing ocean transportation and logistics services from the U.S. mainland to Alaska, Hawaii / Guam, and Puerto Rico. Horizon Lines is the only vessel operator to serve all three of the major Jones Act trades. Under the Jones Act, the marine trade between U.S. ports is limited to U.S.-owned and organized companies operating U.S.-built and U.S.-flagged vessels manned predominantly by U.S.-citizen crews.

Goldman, Sachs & Co. and Latham & Watkins LLP advised Carlyle on the transaction.

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