QIC to acquire Australian marine logistics player
Queensland Investment Corporation (QIC) has agreed to acquire 100% of Australian marine logistics provider Sea Swift, facilitating exits for CHAMP Ventures and HarbourVest Partners.
CHAMP acquired a 73.6% stake in Sea Swift in 2012 for $52.2 million. That deal saw HarbourVest take a 16.4% position for around $11.4 million. Financial details for the QIC transaction have not been disclosed, although The Australian Financial Review reported it would value the company at A$300 million ($204 million).
QIC will invest via its global infrastructure fund, which closed at a hard cap of A$2.3 billion in 2017. The Australian sovereign wealth fund has confirmed it has no plans to make significant operational changes to Sea Swift, but it is expected to leverage synergies related portfolio holdings, including the Port of Melbourne, the country's largest cargo shipping facility.
Sea Swift is considered Australia's largest private shipping operator. The company focuses on general cargo and charter freight services for remote communities in northern Queensland and the Northern Territory. Cargo typically includes essentials such as food, fuel, household, medical and educational supplies and building products. Operations encompass about 450 staff and 28 vessels.
QIC claims A$12.3 billion in infrastructure assets under management globally. It acquired a 50-year lease on the Port of Melbourne in 2016 in a A$9.7 billion deal that included participation from Future Fund and Global Infrastructure Partners (GIP). Other marine assets include a 99-year lease on the Port of Brisbane acquired in 2010 for A$2.3 billion through a separate consortium also featuring GIP.
"We're pleased to have found a strong long-term focused and socially responsible partner in QIC, which shares our commitment to safety and customer service," Fred White, CEO of Sea Swift, said in a statement. "QIC is one of the largest owners of transportation infrastructure in Australia, and in particular brings extensive experience managing marine transportation assets."
The transaction is expected to close within a few months.
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