Kelso Backs Container Leasing Play
The firm is backing Cronos Ltd., replacing TCG Fund as the company's largest shareholder.
July 29, 2010
Container leasing company Cronos Ltd. received a majority equity investment from private equity firm Kelso & Company. Cronos' largest existing shareholder, Transportation Capital Group, also contributed extra funding into company. Terms of the deal was undisclosed.
Along with the extra capital, Cronos entered into a new $765 million revolving credit facility. A spokesman from Cronos declined to comment further on the deal.
The container leasing space has attracted private equity interest in the past. Fortress Investment Group in March filed to take public its container leasing company SeaCube Container Leasing. The firm is looking to raise $165 million through the IPO.
Kelso, meanwhile, generally invests in industrial and consumer products companies. The firm is currently on its eighth fund, which raised approximately $5.1 billion of capital in 2008.
Keefe, Bruyette & Woods served as financial advisor to Cronos, while Greene Radovsky Maloney Share & Hennigh LLP provided legal counsel. Kelso & Company tapped Deutsche Bank Securities Inc. as its financial advisor, while Debevoise & Plimpton provided legal advice.
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