Danish container logistics giant A.P. Moller – Maersk has decided to sell its reefer manufacturer, Maersk Container Industry (MCI), to China International Marine Containers Ltd. (CIMC).
The value of the transaction is $987.3 million on a cash and debt-free basis.
The duo signed an agreement related to the sale of the manufacturer of refrigerated containers on 27 September 2021.
Under the deal, CIMC will take over MCT’s entire organization and assets which include the reefer factory in Qingdao, China, as well as its R&D and test engineering facilities in Tinglev, Denmark.
“We believe that we in CIMC have found a good long-term owner of MCI. The divestment of MCI is part of A.P. Moller – Maersk’s business transformation, where focus is on being an integrated container transport and logistics company creating customer value across the entire supply chain,” Henriette Hallberg Thygesen, CEO of Fleet & Strategic Brands in A.P. Moller – Maersk, commented.
“While strengthening the synergies between the core businesses of our global integrator offering, we have reviewed the strategic fit of MCI and decided to find a new home for MCI that can ensure that the company continues to grow its reefer business through continued development and committed investments from a new owner.”
Founded by Maersk in 1991, MCI has been a part of the company for more than 30 years. Over the years, it has transformed into a business focusing entirely on manufacturing refrigerated containers and in 2020, the company delivered its most profitable result since its foundation.
CIMC wants to continue MCI’s trajectory of increasing sales and investing in new product development and believes that bringing MCI into its group will allow it to do this.
“By leveraging technology and innovation we want to create a new growth platform within cold chain… I am convinced that by combining MCI’s talented people and technologies with our global refrigeration business we will create an exciting future together as a key partner for our customers,” Mai Boliang, Chairman and CEO of CIMC, said.
Star Cool will remain a key part of the way Maersk supports its customers’ cold chain needs as Maersk will continue its cooperation with MCI in the future.
The transaction, subject to regulatory approvals, is expected to close in or before 2022.
Until closing, CIMC and MCI remain two separate companies and continue to run their businesses as usual.