Alexander & Baldwin to Separate Into Two Public Companies

Walter A. Dods will serve as chairman of Matson. Photo courtesy of A&B.

By Sonia Isotov

Alexander & Baldwin, Inc. today announced that its board of directors has unanimously approved a plan to separate the company into two independent, publicly traded companies.

The company will separate into two Hawaii-based companies. The first, Alexander & Baldwin (A&B), will retain the Alexander & Baldwin, Inc. name and will focus on real estate and agriculture.

The second company, Matson, will focus on ocean transportation and logistics, and will continue to serve the US West Cost, Hawaii, Guam, Micronesia and China. Matson became a wholly-owned subsidiary of Alexander & Baldwin in 1969.

Under the plan, Alexander & Baldwin shareholders will own, upon the completion of a tax-free separation, one share of both A&B and Matson stock for each share of company stock owned. The separation is expected to be completed in the second half of 2012.

A&B will be led by Stanley M. Kuriyama, who will serve as its chairman and chief executive officer. Photo courtesy of A&B.

“Over the past decade, Alexander & Baldwin’s board of directors and management have periodically conducted strategic reviews, including an evaluation of the merits of separating into two companies,” said Walter A. Dods, chairman of Alexander & Baldwin, in a written statement.

“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.”

“This separation will create two financially strong public companies, each with more than one billion dollars in assets, a thousand employees, strong balance sheets and cash flow to fund future growth,” continued Dods.

The planned separation will not involve the sale of either business, and a company spokesman assured customers that there will be no interruption in operations or service, and the general public will not experience any changes in the way the company conducts business.

While some shift in our workforce is expected between the two companies, their spokesman said that there should be no net job loss as a result of the separation.

Upon completion of the transaction, A&B will be led by Stanley M. Kuriyama, who will serve as its chairman and chief executive officer. Christopher J. Benjamin, who currently serves as president of A&B Land Group, will serve as A&B’s president and chief operating officer. Paul K. Ito, the company’s controller and assistant treasurer, will serve as A&B’s chief financial officer.

Walter A. Dods will serve as chairman of Matson. Matthew J. Cox, who currently serves a president of Matson, will serve as its president and chief executive officer, and Joel M. Wine, Alexander & Baldwin’s present chief financial officer, will serve as Matson’s chief financial officer upon completion of the transaction.

Each corporation will have its own independent board of directors, with industry-specific expertise. To further enhance the maritime expertise of the board, the company announced earlier today that retired four-star Admiral Thomas B. Fargo was appointed to the Alexander & Baldwin and Matson boards of directors.