Canadian Pension Plan Investment Board (CPP Investments) has acquired a 100% stake in Ports America through the acquisition of an interest from funds managed by Oaktree Capital Management LP (Oaktree).
CPP Investments has been a minor investor in Ports America for years and it will now continue to support the business with long-term capital and continuity of ownership in mind.
The transaction is expected to close in Q4 of 2021, subject to satisfaction of closing conditions.
“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 and Head of Infrastructure at 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.
“Through further investment, Ports America can continue to meet these needs and we look forward to working with CEO Mark Montgomery and the management team to support the growth of the business in the upcoming years.”
CEO of Ports America, Mark Montgomery, added, “At Ports America, our commitment and ability to provide our customers with excellent, safe service and long-term, strategic value informs everything we do.”
“Our partners at Oaktree and CPP Investments have always shared that commitment, and we look forward to continuing our work with the support of the CPP Investments team as they increase their ownership stake. We share a long-term vision for Ports America and are excited to grow our capabilities and service offerings to position the company for another century of innovation, leadership and success.”
Ports America has recently teamed up with the likes of Ceres Marine Terminals and SSA Atlantic to form a joint venture company to provide container terminal and stevedoring services at the Port of Charleston.
Launched in May 2020, the new company will see them work closely with the South Carolina Ports Authority (SCPA) and enable the most efficient use of the port’s terminal assets and resources.