Tank Containers

Arcus takes majority stake in

The tank merger and acquisition wave continues . Hot on the heels of GATX ’ s acquisition of Trifleet Leasing , in late February Arcus Infrastructure Partners announced that its Arcus European Infrastructure Fund 2 SCSp ( AEIF2 ) had taken a majority stake in Peacock Container Holding . Owning and operating a fleet of more than 7,500 tanks containers with capacities between 13,000 and 35,000 litres , Peacock is a medium-sized , though fast-growing tank lessor . Peacock ’ s client base , contracted into short and medium term leases , predominantly serves European and Asian operators and chemical producers out of Singapore and Rotterdam . The company operates in an attractive specialised market , offering various types of tank container for lease as well as value add services , such as GPS tracking . Arcus closed AEIF2 , its second fund , in April 2020 making some € 1.22 billion available for investment . Peacock is the fifth investment in this fund . Most of Arcus ’ s investments are largely focused on fixed European infrastructure assets . The fund manager injects capital into businesses , often selling the stake later on . Two port groups have gone through this process . In 2011 , Arcus bought UK-based Forth Ports for £ 751 million , then sold the operator in 2018 to Canadian pension fund manager Public Sector Pension Investment Board . In 2019 Arcus offloaded its stake in Belgiumheadquartered Euroports to a consortium of other investors . So Peacock represents something of a departure from the fund manager ’ s previous strategy . Nicola Palmer , Arcus partner and transaction lead , said the investment house has been evaluating the ISO tank container leasing market , actively considering targets for a number of years . “ Specifically , we view the sector ’ s resilience , growth prospects and strong infrastructure-like characteristics to be highly favourable ,” she said . “ Peacock has a young , diversified fleet , a strong commercial and technical platform and an experienced management team .” Ian Harding , Arcus co-managing partner and head of origination , pointed out that while tank leasing is largely a new area of investment for infrastructure investors , Arcus investors will recognise that this deal has similarities to its previous investments in two rolling stock lessors – Alpha Trains and Angel Trains . “ These businesses all operate with similar fundamentals , predictable cash flows from robust medium-term contracts and plenty of opportunity for both organic and targeted fleet expansion ,” Harding said . “ In addition , Peacock has a strong environmental , social , and governance ( ESG ) profile including favourable environmental credentials , sustainability benefits and a proven track record of safety making it an ideal investment for AEIF2 .” In August 2015 , Arcus sold its entire stake in UK-based Angel to existing shareholders , at a return “ well above the entry investment case ”. During the Arcus ownership period , Angel expanded its rolling stock portfolio and invested £ 690 million in new build opportunities , procuring 336 additional vehicles . Angel achieved 12 percent EBITDA growth during this time . Luxembourg-based Alpha remains part of AEIF2 , and Arcus says that since the acquisition , the company ’ s fleet and EBITDA have more than tripled . Therefore Peacock can look forward to a period of significant investment in its fleet , as well as value-added services , like telematics , fleet management solutions , and supply chain optimisation . The tank lessor ’ s current fleet consists of standard tanks and more specialised units . Standard tanks can hold various product categories such as chemicals , foodstuffs and liquid pharmaceuticals , while specialised tanks hold products such as bitumen and liquefied gases . The company operates primarily out of Singapore and Rotterdam and via agents in the US and Middle East . Peacock CEO Jesse Vermeijden stated : “ I have personally seen our company grow from a small Benelux-focused lessor to what it is today , and I am extremely proud of our loyal and hard-working team for reaching this milestone . Arcus ’ experience with managing transport assets and its appreciation for the heritage of our business makes it a strong fit for Peacock . Just as importantly we are fully aligned with Arcus ’ forward-thinking , quality focused strategy , sustainability principles , and ambition for growth in the market .”