Cronos Ltd. (“Cronos” or the “Company”), a leading container leasing and
management company, announced today that it received a majority equity
investment from funds affiliated with Kelso & Company (“Kelso”), one of
the oldest and most established firms specializing in private equity
investing. In addition, TCG Fund, previously the Company’s largest
shareholder, increased its equity investment in the Company.
As part of the overall transaction, Cronos has purchased additional
container assets, which increases the size of its owned assets to $1
billion. Concurrently, the Company also entered into a new $765 million
revolving credit facility.
“We are thrilled to welcome Kelso as our new partner and to continue our
successful long-term partnership with Transportation Capital Group
(“TCG”). This transaction allows us to significantly increase our
commitment to the container leasing industry both as owner and manager.
We look forward to leveraging our stronger capital position in order to
take advantage of attractive market growth opportunities and to
strengthen our position as ‘the partner of choice’ in the industry,”
stated Peter J. Younger, President & Chief Executive Officer of Cronos.
Christopher L. Collins, Managing Director of Kelso, added “We are
excited to partner with Cronos and TCG in the container leasing
industry, which we have long viewed as an attractive space due to its
strong long-term fundamentals. We believe that Cronos is well-positioned
with its high quality and diverse asset base, excellent customer
relationships, industry-leading systems and its experienced and highly
capable management team.”
Milton J. Anderson, Managing Director of TCG, said “This transaction
allows us to further strengthen our long-term partnership with Cronos by
joining forces with Kelso. Moreover, we are proud to facilitate the
formation of this partnership which provides Cronos with a strengthened
long-term platform for continued growth.”
Keefe, Bruyette & Woods Inc. (NYSE: KBW) acted as the exclusive
financial advisor to Cronos. Greene Radovsky Maloney Share & Hennigh LLP
acted as legal advisor to the Company.
Deutsche Bank Securities Inc. acted as financial advisor to Kelso &
Company. Debevoise & Plimpton LLP acted as legal advisor to Kelso &
Company.
Founded in 1978, Cronos is among the world’s leading container leasing
companies, operating a diversified fleet of dry, refrigerated, tank and
dry freight special equipment. Cronos provides equipment leasing, design
and sales to its customers in the transportation industry. Cronos has 91
employees and dedicated agents located in 18 offices in 17 countries.
Kelso is one of the oldest and most established firms specializing in
private equity investing. Since 1980, Kelso has made investments in over
100 companies, with aggregate initial capitalization at close of over
$35 billion. The firm is currently investing its eighth investment
partnership, Kelso Investment Associates VIII, L.P., with approximately
$5.1 billion of committed capital.
TCG serves as general partner of TCG Fund, a Cayman Island limited
partnership which invests in transportation companies.
Cronos
Ryan Bohlander, +1 415-399-6160
