The Canada Pension Plan Investment Board is acquiring North America’s largest marine terminal operator.
A minority investor in the Ports America Group since 2014, the CPPIB has reached a deal to secure all outstanding interest in the company from Oaktree Capital Management. While the exact details of the transaction aren’t known, the management structure is expected to remain unchanged.
Headquartered in Jersey City, N.J. and operating out of 70 locations and 33 ports in the U.S., the PAG provides technologies designed to streamline a wide range of supply chain services, including stevedoring for commercial shipping, military and cruise ships. Each year, the company is involved in the shipment of nine million tonnes of general cargo, 2.5 million vehicles and 1.7 million cruise ship passengers.
The CPPIB will continue to support the business with long-term capital to fund the company’s expansion of its offerings to shipping line and beneficial cargo owner customers. In a press release, Scott Lawrence, managing director and head of infrastructure at the CPPIB, said the PAG played an important role in global trade networks making it well-suited to the investment organizations’ long-term infrastructure strategy.
“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 [chief executive officer] Mark Montgomery and the management team to support the growth of the business in the upcoming years.”
The transaction, which is subject to certain closing conditions and regulatory requirements, is expected to close by the end of 2021.
In other news, the Alberta Investment Management Corp. is the leading investor in India’s first renewable energy infrastructure investment trust.
The pension was the largest at-launch investor in the Virescent Renewable Energy Trust, founded by KKR & Co. Inc., which raised about US$62 million in its first week. The AAA-rated trust invests in operating renewable energy assets in India.
The VRET’s initial portfolio is comprised of nine operational solar projects. Its assets are located in Maharashtra, Tamil Nadu, Uttar Pradesh, Gujarat and Rajasthan. According to a press release, Ahmed Mubashir, director, infrastructure and renewable resources at AIMCo, noted the investment is part of the organization’s strategy to expand its footprint in Asia.
“VRET’s portfolio of operating renewable energy assets whose economics are underpinned by long-term power purchase agreements are well-aligned with our clients’ investment objectives. We look forward to partnering with KKR and Virescent to further grow the platform and provide renewable energy solutions to India in the coming years.”