Canada Pension Plan Investment Board (CPP Investments) has entered into a definitive agreement to completely take over North America’s largest marine terminal operator, Ports America, through the acquisition of interest from funds managed by Oaktree Capital Management LP (Oaktree).
CPP Investments, the investment management organisation, has been a minority investor in Ports America since 2014 and has announced that will continue to support the business with long-term capital and continuity of ownership.
The deal values Ports America at over US$4 billion, according to a Reuters report.
“Ports America represents the opportunity to continue to invest in a high-quality operator that plays an important role in global trade, making the company a good fit for our long-term infrastructure investment strategy,” said Scott Lawrence, Managing Director, Head of Infrastructure, CPP Investments.
Ports America operates in 70 locations in 33 ports on each of the United States’ three coasts and handles 13.4 million TEU annually, including 10 million tons of general cargo, 2.5 million vehicles and 1.7 million cruise ship passengers.
The Managing Director and Co-Portfolio Manager of Oaktree’s Infrastructure Investing strategy, Emmett McCann expressed his gratitude for the 12-year old cooperation with the port operator, and his enthusiasm for this new ownership structure.
“Ports America’s growth, track record of innovation and strong financial profile have positioned the company for success in today’s cargo management and terminal operations environment,” commented McCann.
According to a statement, the transaction is subject to satisfaction of certain closing conditions and regulatory requirements and is expected to close by the fourth quarter of the year.