Container Lessor GE SeaCo Reported for Sale

Owners of fifth-largest fleet said to be seeking $2.5 billion


Owners of GE SeaCo, which operates the fifth-largest container leasing fleet, are seeking a sale that puts the company's enterprise value at about $2.5 billion, the Financial Times reported.


GE SeaCo is owned 50-50 by General Electric's finance unit and SeaCo. The company appointed Deutsche Bank last October to seek strategic alternatives and is reported to have made a series of presentations this year to potential buyers.


Although GE has said it doesn't consider the container unit a core business, it could hold on to the business if it does not generate an acceptable price, the Financial Times reported.


Another leasing company may be on the block as Chicago's Pritzker family is reportedly nearing a deal to sell Triton Container International with its 1.8 million 20-foot equivalent units to Warburg Pincus and Vestar Capital Partners for an enterprise value of about $3 billion.


Container lease prices have risen amid tight supplies. Chinese container manufacturers still haven't resumed full production that was halted during the recession. Meanwhile, rising steel prices have boosted prices for new and used boxes. The two largest publicly traded container lessors, TAL International and Textainer, last week reported increased profits.
(Source:http://www.joc.com)