The Cronos Group Receives a Majority Equity Investment from Funds Affiliated with Kelso & Company and an Additional Equity Investment from TCG Fund and Increases Its Owned Assets to $1 Billion

SAN FRANCISCO--(BUSINESS WIRE)--Cronos Ltd. (“Cronos” or the “Company”), a leading container leasing and management company, announced today that it received a majority equity investment from funds affiliated with Kelso & Company (“Kelso”), one of the oldest and most established firms specializing in private equity investing. In addition, TCG Fund, previously the Company’s largest shareholder, increased its equity investment in the Company.

“This transaction allows us to further strengthen our long-term partnership with Cronos by joining forces with Kelso. Moreover, we are proud to facilitate the formation of this partnership which provides Cronos with a strengthened long-term platform for continued growth.”

As part of the overall transaction, Cronos has purchased additional container assets, which increases the size of its owned assets to $1 billion. Concurrently, the Company also entered into a new $765 million revolving credit facility.

“We are thrilled to welcome Kelso as our new partner and to continue our successful long-term partnership with Transportation Capital Group (“TCG”). This transaction allows us to significantly increase our commitment to the container leasing industry both as owner and manager. We look forward to leveraging our stronger capital position in order to take advantage of attractive market growth opportunities and to strengthen our position as ‘the partner of choice’ in the industry,” stated Peter J. Younger, President & Chief Executive Officer of Cronos.

Christopher L. Collins, Managing Director of Kelso, added “We are excited to partner with Cronos and TCG in the container leasing industry, which we have long viewed as an attractive space due to its strong long-term fundamentals. We believe that Cronos is well-positioned with its high quality and diverse asset base, excellent customer relationships, industry-leading systems and its experienced and highly capable management team.”

Milton J. Anderson, Managing Director of TCG, said “This transaction allows us to further strengthen our long-term partnership with Cronos by joining forces with Kelso. Moreover, we are proud to facilitate the formation of this partnership which provides Cronos with a strengthened long-term platform for continued growth.”

Keefe, Bruyette & Woods Inc. (NYSE: KBW) acted as the exclusive financial advisor to Cronos. Greene Radovsky Maloney Share & Hennigh LLP acted as legal advisor to the Company.

Deutsche Bank Securities Inc. acted as financial advisor to Kelso & Company. Debevoise & Plimpton LLP acted as legal advisor to Kelso & Company.

Founded in 1978, Cronos is among the world’s leading container leasing companies, operating a diversified fleet of dry, refrigerated, tank and dry freight special equipment. Cronos provides equipment leasing, design and sales to its customers in the transportation industry. Cronos has 91 employees and dedicated agents located in 18 offices in 17 countries.

Kelso is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has made investments in over 100 companies, with aggregate initial capitalization at close of over $35 billion. The firm is currently investing its eighth investment partnership, Kelso Investment Associates VIII, L.P., with approximately $5.1 billion of committed capital.

TCG serves as general partner of TCG Fund, a Cayman Island limited partnership which invests in transportation companies.