Oaktree Capital Management has sold its majority stake in Ports America, the largest terminal operator in North America, for an undisclosed price.
Canada Pension Plan Investment Board (CPP Investments) has agreed to acquire the stake giving it 100% control of the company that was founded in 1921.
CPP Investments has been an existing minority investor in Ports America, which has operations at 70 locations across 33 ports on each of the US' three coasts, since 2014.
Toronto-based CPP Investments, which has funds under management of CAD 519.6bn ($407bn) said it will “continue to support the business with long-term capital and continuity of ownership”.
Ports America annually handles 13.4m teus, 10m tonnes of general cargo, 2.5m vehicles and 1.7m cruise ship passengers.
“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.
“Terminal operators play a crucial role as cargo demand and transportation requirements continue to grow in response to the rapid and dynamic changes in how individuals and businesses are buying and selling products.”
Emmett McCann, managing director and co-portfolio manager of Oaktree’s infrastructure investing strategy said it “had been a privilege” to work alongside the entire Ports America team for the past 12 years.
“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, and we fully expect the business will only benefit from this new ownership structure,” he said.
The transaction is subject to certain closing conditions and regulatory requirements and is expected to close by the fourth quarter of 2021.
This is the second investment made in US maritime infrastructure by Canadian investors in less than a month.
In early September, Moda Midstream agreed to sell the Moda Ingleside Energy Center in Corpus Christi to Calgary-based Enbridge.
Last year, the Texas facility loaded more than 25% of all US Gulf Coast crude exports and has the capacity to load 1.6m barrels per day on VLCCs.
