Poseidon to buy US asset manager Atlas Corp in $10.9bn deal

Poseidon Acquisition Corp has agreed to buy US asset manager Atlas Corp in a $10.9bn deal.

Poseidon is comprised of certain affiliates of Fairfax and the Washington Family, David Sokol, chairman of the board of Atlas, and Ocean Network Express (ONE).

Under the terms of the deal, Poseidon will buy all outstanding common shares of Atlas not owned by Fairfax, Washington and Sokol - who currently own about 68% - for $15.50 per share in cash. The purchase price represents a 34% premium to Atlas' unaffected share price on 4 August.

Nicholas Pitts-Tucker, chair of the Special Committee of the board of Atlas, said: "We are pleased to have reached this agreement which, through the combination with Poseidon, introduces Atlas to an important corporate sponsor in the form of ONE.

"The agreement also provides Atlas' minority shareholders with a certain cash outcome due to be paid on closing, subject to the approval of a majority of the minority shareholders. Today's announcement is the result of a comprehensive process in which the Special Committee, with the assistance of external financial and legal advisers, carefully considered Poseidon's proposal and other strategic alternatives available to Atlas.

"Fairfax, Washington, Mr. Sokol and ONE will be outstanding partners as Atlas advances its operational improvements and drives growth to support its customers and enhance opportunities for its employees."

The deal is expected to close in the first half of next year.