EQT has announced that its Infrastructure II and III funds have entered into a definitive agreement to sell a majority stake in Direct ChassisLink, Inc. (DCLI) to funds managed by affiliates of Apollo Global Management, LLC. Under the terms of the agreement, EQT will retain a 20% minority stake.

Acquired by EQT in June 2016, DCLI is today a leading provider of marine and domestic chassis and asset management services in North America, operating an extensive network of approximately 235,000 chassis across over 450 locations. Chassis are an essential part of the transportation value chain and are used to carry containers between ships in port and local destinations, to and from intermodal hubs for long haul transport by rail or truck, and for last mile distribution.

During EQT Infrastructure’s ownership, DCLI expanded into the domestic chassis market, acquiring nearly 90,000 domestic chassis supporting blue-chip customers through long-term agreements, and continued expansion within the marine chassis market. These transactions have not only nearly doubled the size of DCLI, but also diversified the company’s product offering and customer base. In addition, they have expanded DCLI’s national footprint to encompass all major ports and railway terminals in the US, positioning it as a leading chassis provider in the ever-growing North American market.

DCLI’s subsidiary, Blume Global, has developed its offering to include asset management, logistics execution, end-to-end supply chain visibility, optimization, automated financial settlement and more by leveraging nearly 25 years of data and customer insights. Since 1994, Blume Global has operated in the global supply chain space with its integrated network and data insights across nearly 100 countries, more than 1,400 offices with 300+ IMCs, and 6,000+ motor carriers, and managing approximately 300,000 intermodal assets. Its platform processes US$1 billion in transactions for customers with 99.99 percent billing accuracy.

The transaction is subject to customary conditions and approvals. It is expected to close in Q2 2019. Financial terms of the transaction were not disclosed.

Citigroup Global Markets Inc. acted as financial advisor and Simpson Thacher & Bartlett LLP as legal advisor to DCLI and EQT Infrastructure.