Leasing company Bohai recently signed a memorandum of understanding to acquire 80% of a limited container leasing entity known as Cronos. Meanwhile, another investor was slated to acquire the other 20% of the Cronos, according to Bharat Bhise, the executive of Bravia Capital, which arranged this transaction.
Prior to the acquisition’s finalization, Cronos and marine container lessor Seaco – whose parent company is Bohai – kept operating separately. However, after the acquisition was finalized, Bohai subsidiaries were expected to own more than 3.4 million container fleet, which meant that Bohai would own the biggest container fleet available for leasing worldwide.
Bohai was excited about the acquisition, as company officials felt that it would create an extremely large and diversified fleet featuring special, dry, reefer, and tank containers across the globe. Wang Hao, Bohai’s chairman, specifically said that the acquisition would enable the company to provide service to a much broader range of customers around the world and thus strengthen its capabilities in multiple regions.
According to Hao, Bohai is dedicated to providing top-tier customer service and to growing exponentially. Adding Cronos to the mix only put Bohai in a better position to achieve this, as Cronos became yet another one of the many transportation leasing and finance companies in Bohai’s robust portfolio. Other companies in Bohai’s portfolio include Seaco.
Bhise from Bravia essentially echoed Hao in saying that Cronos would be an excellent strategic fit with Bohai.
In the global transportation sector, both scale and size are critical factors for success. For this reason, Bohai’s acquisition of leasing company Cronos is a move that has not been taken lightly. Bohai officials are hopeful that these types of strategic moves – which are possible due to the company’s buying power — will continue to help the company to gain a significant competitive advantage in the years ahead.