Alexander & Baldwin, the Hawaii-based transportation, logistics, and real estate giant, said Thursday it would split into two independent publicly traded companies, effective the second half of 2012.
One of the companies will be known as Matson, an ocean shipping and logistics company with operations linking the U.S. West Coast with China, Hawaii, Guam, and Micronesia. Matson became a wholly owned subsidiary of Alexander & Baldwin in 1969.
The second company, which will retain the Alexander & Baldwin name, will focus on real estate development, commercial real estate, and agriculture, the company said.
"After thorough evaluation, we have concluded that the increased size, capabilities, and financial strength of both our land and transportation businesses now enable these operations to independently execute their strategies to maximize shareholder value," said Walter A. Dods, chairman of Alexander & Baldwin, in a statement.
The planned separation does not involve the sale of either business, and no net job loss will result, Stanley M. Kuriyama, Alexander & Baldwin's president and CEO, said in the statement.
Matthew J. Cox, currently Matson's president, will serve as president and CEO once the separation is completed, Alexander & Baldwin said. The new Matson will consist of Matson Navigation Co. and Matson Logistics.
In the past decade, Matson has expanded beyond its core Hawaii and Guam services into China. Today, Matson operates an expedited steamship service from Shanghai to Long Beach. Matson has also expanded its logistics business to the point where it ranks among the nation's top 10 integrated logistics companies, Alexander & Baldwin said.
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