General Electric (NYSE:GE) has agreed to sell its stake in one of the worlds biggest marine container leasing companies, GE SeaCo, to Chinas HNA Group and Bravia Capital in a deal valued at $1.05 billion.
The Chinese companies said Monday they will take over GE SeaCo, a shipping container leaser owned 50% by GE Capital and 50% by SeaCo, as well as some other assets in the standardized containers industry that are owned by the companies.
GE will receive about $500 million for its interests in the venture, while SeaCo will get about $528 million. The move marks the largest ever foreign acquisition by HNA, which is a conglomerate that owns Chinas fourth-largest carrier, Hainan Airlines, as well as a number of other businesses.
Bravia, which is a Hong Kong-based private equity company, said GE SeaCo is the fifth-largest player in the global marine container leasing industry owning more than 870,000 standard 20-foot units.
The companies said the deal, which is subject to regulatory and shareholder approval, is being funded using both stock and debt. Following the close, GE SeaCo will operate as a core business within HNAs existing logistics and finance businesses. Its management team will remain with the company.