Apollo, EQT Said to Mull $4.5 Billion Sale of Direct ChassisLink
(Bloomberg) -- Apollo Global Management Inc. and EQT AB funds are exploring the sale of Direct ChassisLink Inc., the largest U.S. provider of chassis for marine and domestic containers, according to people with knowledge of the matter.
The alternative asset managers are working with an adviser to solicit bids that are expected to value the company about $4.5 billion, including debt, some of the people said.
An Apollo representative declined to comment. An EQT spokesperson didn’t immediately have a comment.
Apollo in 2019 acquired a majority stake in Charlotte, North Carolina-based DCLI from EQT Infrastructure, which retained 20%. The company provides chassis leasing and other services to shipping companies, railroads, terminal operators, logistics firms and other transportation-related companies. Chassis are supporting frames used to transport containers and other items.
DCLI was formed in 1988 as a division of Maersk Inc., a unit of AP Moller-Maersk, which sold the company to Littlejohn & Co. in 2012. Littlejohn sold it to EQT four years later.
It competes against companies including I Squared Capital-controlled FlexiVan Leasing, a marine chassis provider that last year agreed to merge with American Intermodal Management.
©2021 Bloomberg L.P.