2007

New Kid (but Experienced Parents) on the Block

Last week, GE Transportation Finance (“GE”) and Peter Dohle Schiffahrts – KG (“Peter Dohle”), one of the leading non-liner containership owners in the world, announced the formation of a joint venture to acquire and charter container vessels. This venture is the successful fruition of two years of study by GE to determine how to grow the transportation business. As a consequence of its size and the competitive marketplace, organic growth was difficult and acquisitions pricey. The focus on the containership segment probably had some roots in the container leasing business acquired from Transamerica a few years ago and was given further impetus as a consequence of a successful equity investment in containerships in the recent past. Finally and most importantly, GE knows and is comfortable with the operating lease business model being at the forefront of the airline, railcar and container leasing businesses. This is a replication of that model.

This is only an excerpt of Equity – 04/12/2007

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