Investment firm Bravia Capital recently strengthened leasing company Bohai’s status in the global transportation industry by helping Bohai to successfully acquire Cronos Limited, a container leasing business, according to Bravia Capital Chief Executive Officer Bharat Bhise.
The Cronos acquisition was a major move for Bohai, as it complemented the000 company’s existing Seaco Group investment. Through the acquisition, which resulted in Cronos’s and Bohai’s amalgamation, Bohai became the most diversified and biggest container leasing business worldwide in terms of container equivalent units, or CEUs.
At the same time, Seaco, one of Bohai’s portfolio companies, raised a total of $230 million in funding by issuing $100 million notes whose weighted average life (WAL) was 1.4 years. In addition, it issued $130 million notes whose WAL was 3.5 years. The notes yielded more than 2.7% and more than 3.88%, respectively.
According to Bhise, the recent acquisition of Cronos brought to Seaco a business whose cargo container portfolio was just as diversified and well managed. However, the two companies also complement each other in that they feature unique strengths in different regions, along with unique customer bases.
Bhise emphasized that the acquisition would benefit Bohai shareholders, as the acquisition essentially developed a clear leader in the dynamic container leasing market. The combination of the two companies was expected to drive more cost efficiencies as well as make both businesses more competitive market wide. Customers would also benefit from the acquisition, as increased value could be delivered to them as a result.
Cronos is among the biggest lessors of cargo containers in the world and remains a leader in the leasing of specialized containers. The company has developed a reputation for reliably leasing tank, refrigerated, dry, and specialized containers to users in various industries around the world. Its customers have come from more than 20 locations across 18 countries.