730
Views

MSC to Buy Brazil’s Wilson Sons Terminal and Tug Operator

MSC containership in Brazil
MSC's vessel being assisted by Wilson Sons' tugs in Brazil (Wilson Sons)

Published Oct 21, 2024 3:06 PM by The Maritime Executive

 

MSC Mediterranean Shipping Company is continuing its global acquisition efforts with the latest transaction announced in Brazil. The company has agreed to acquire a controlling interest in Wilson Sons, which is described as the largest integrated port and maritime logistics operator in Brazil.

Under the terms of the agreement, MSC will acquire 56.47 percent of the company’s shares from Ocean Wilson Holdings, a Brazilian-based investment company for approximately $760 million or just over $3 per share. Under securities law, MSC would then be required to also launch a public tender offer for the remaining shares. The shares will be acquired by MSC’s subsidiary SAS Shipping Agencies with a total value of the transaction at approximately $1.35 billion.

News of the agreement came just days after the Brazilian newspaper Valor Economico reported that Miami-based I Squared Capital, a private equity firm focusing on global infrastructure investments, was contemplating an offer for Wilson Sons. Ocean Wilson reported in June 2023 that it was launching a strategic review of its investments. I Square indicated that it might be making an offer within the next 15 days without setting a value while market rumors speculated that MSC was also interested in the company. Wilson Sons and its investors confirmed in a statement that they had received a letter from I Squared while saying they were also in active discussions with “another interested party.”

Wilson Sons highlights that it is more than 180 years old and today it has operations including towage, container terminals, offshore oil and gas support services, small vessel construction, logistics, and ship agency. Its portfolio includes a presence in most major ports in Brazil with container terminals in Bahia and Rio Grande do Sul. It also has 80 tugboats, which make up the largest and most powerful fleet in the country, 23 offshore support vessels flying the Brazilian flag, two offshore support bases, a customs logistics center, two shipyards, provides international logistics services for more than 70 countries, and operates one of the largest independent shipping agencies in Brazil.

“Our strategy has always been focused on delivering enhanced long-term value to our shareholders,” said Caroline Fougler, Chair of Ocean Wilsons while saying the agreement represents the successful realization of the long-term investment in Wilson Sons. Ocean Wilsons the statement says will focus on sustainable growth while Wilson Sons will benefit from additional resources and support.

MSC already has a growing presence in Brazil including operations of a container terminal in Santos, Brazil with Maersk. Last December they announced plans to expand the operations in Santos after a long battle with local interest that sought to block the companies’ efforts.

MSC continues to expand its shoreside operations and logistics offerings. It previously acquired terminals in France and agreed to an expansion in Belgium. MSC also recently completed the acquisition of a nearly 50 percent state in the operator of the container terminals in Hamburg forming a new partnership with the city. In addition to a rapid expansion of its container fleet, MSC has also diversified with the acquisition of Gram Car Carriers and continues to invest in the expansion of its cruise ship operations. 

The acquisition of the shares of Wilson Sons requires regulatory approval.  The companies are targeting completing the transaction in the second half of 2025.