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CINDY ELLEN RUSSELL / 2014
Horizon Lines Inc. ceased carrying cargo in Hawaii on Friday. The company’s Honolulu Harbor terminal, shown above next to Matson’s terminal, will be used by The Pasha Group.
Hawaii now has two domestic ocean cargo shipping lines instead of three.
Horizon Lines Inc. ceased carrying cargo Friday as part of being split up and sold to competitors The Pasha Group and Matson Inc.
The $610.5 million sale, which was announced in November, closed Friday.
California-based Pasha paid $141.5 million for Horizon’s Hawaii operations, including four ships, a terminal at Honolulu Harbor leased from the state, Hawaii Stevedores Inc., and California-based trucking and warehouse operator Sea-Logix LLC.
Pasha, which already operated two ships in its Hawaii service, retained Florida-based Crowley Maritime Corp. to manage and crew the former Horizon vessels.
“Our mission is to provide a smooth and seamless transition for Horizon’s customers and employees, and continue to enhance all our customers’ shipping experience through service and choice,” George Pasha IV, Pasha’s president and CEO, said in a statement.
Honolulu-based Matson acquired the Alaska operations of Horizon for $469 million, which included three ships in active service, four older reserve ships, cargo terminals at three Alaskan ports and all of Horizon’s non-Hawaii business liabilities.
Matson repaid $400 million in Horizon debt and paid Horizon shareholders $69 million, or 72 cents per share. Proceeds from Pasha’s part of the deal also paid off debt.
In Alaska, Matson has a roughly 50 percent market share with service between Tacoma, Wash., and three Alaska ports: Anchorage, Kodiak and Dutch Harbor.
“We are pleased to have completed this strategic acquisition that substantially grows our ocean transportation business into the attractive Alaska market,” Matt Cox, Matson president and CEO, said in a statement. “The Alaska market is a natural geographic extension of our platform as a leader serving our customers in the Pacific.”
Horizon, which is based in North Carolina, is basically folding up. The company discontinued service to Puerto Rico earlier this year and liquidated associated assets there.
