Horizon Lines Sold to Castle Harlan

The Carlyle Group announced that it has entered into a definitive agreement to sell Horizon Lines, the nation's leading Jones Act container shipping company, to private equity firm Castle Harlan for a purchase price of $650 million. Carlyle acquired Horizon Lines, formerly known as CSX Lines, from CSX Corp. in a recapitalization transaction, which was completed in February 2003.



Based in Charlotte, North Carolina, Horizon Lines is the nation's largest ocean transportation company, with 16 vessels providing ocean transportation and logistics services from the U.S. mainland to Alaska, Hawaii / Guam, and Puerto Rico. Horizon Lines is the only vessel operator to serve all three of the major Jones Act trades.



Carlyle Managing Director and head of the automotive and transportation group, Greg Ledford, said, "Our investment in Horizon Lines exemplifies how private equity can serve as a catalyst for value creation. Partnering with an exceptional management team, led by Chuck Raymond, we?ve helped to establish Horizon Lines as a truly independent and stand alone company. Horizon Lines has generated outstanding results for our investors while continuing to deliver superlative service for its customers."



Horizon Lines Chairman and CEO Charles G. (Chuck) Raymond commented, "Horizon Lines is the latest example of how independence can foster innovation, growth and value. Carlyle has served as an excellent financial partner in establishing Horizon Lines as an independent company and the premier brand in domestic container shipping. We very much look forward to working with the investment professionals at Castle Harlan as we continue to build our company and capabilities."



Castle Harlan Managing Director Marcel Fournier explained, "We?ve been impressed with the results that Horizon Lines has achieved over the last several years and are excited about the company?s prospects. We look forward to working with the management team to take Horizon Lines to the next level of profitability and success."



Goldman, Sachs & Co. and Latham & Watkins LLP advised Carlyle on the transaction.



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The Carlyle Group is a global private equity firm with more than $18 billion under management. Carlyle generates extraordinary returns for its investors by employing a conservative, proven, and disciplined approach. Carlyle invests in buyouts, venture, real estate, leveraged finance, and turnarounds in North America, Europe, and Asia, focusing on aerospace & defense, automotive & transportation, consumer, energy & power, healthcare, industrial, technology & business services, and telecommunications & media. Since 1987, the firm has invested $10.5 billion of equity in 300 transactions. Collectively, Carlyle?s portfolio companies have revenue of more than $31 billion and employ more than 151,000 people. The Carlyle Group employs more than 500 people in 14 countries. Visit http://www.carlyle.com for additional information.