March 8, 2019

Apollo Global to acquire DCLI

Funds managed by affiliates of Apollo Global Management have agreed to acquire Direct ChassisLink Inc (DCLI) and Blume Global from EQT Infrastructure for approximately $2.5 billion.

As part of the transaction, EQT will retain a 20% stake in DCLI and Blume Global.

Subject to regulatory approvals, the transaction is expected to close in the second quarter of 2019.

DCLI’s customers consist primarily of container shipping companies, railroads, motor carriers, beneficial cargo owners, and other logistics companies that use DCLI’s chassis under long-term contracts.

The deal represents a bet by Apollo on DCLI’s dominant position in the transfer of shipping containers between ports and hubs for transport by rail or truck.

According to EQT’s website, despite reduced trade flows due to a drop in imports to and exports from China, Charlotte, North Carolina-based DCLI has doubled in size since Swedish private equity firm EQT Partners acquired the company in 2016.

DCLI owns or manages more than 226,000 marine and domestic chassis.

Barclays served as financial advisor and Paul Weiss Rifkind Wharton & Garrison served as legal advisor to the Apollo funds in this transaction.

Citigroup Global Markets served as financial advisor and Simpson Thacher & Bartlett served as legal advisor to DCLI on this transaction.