Ontario Teachers’ Pension Plan, PSP Investments and GIC, Singapore’s sovereign wealth fund, have agreed to invest a total of US$700 million in XPO Logistics to accelerate the company’s growth strategy.
The Connecticutt-based company will receive all of the net proceeds, which it intends to use primarily for unspecified acquisitions.
The transaction provides for the sale of newly issued common stock and preferred stock to the investor group. Upon approval by the company’s shareholders, the preferred stock will be converted into common stock and the investor group will hold approximately 22% of XPO’s common stock on a fully diluted basis.
“We’re delighted to welcome PSP Investments, GIC and Ontario Teachers’ Pension Plan as significant shareholders in XPO,” says Bradley Jacobs, chairman and CEO of XPO Logistics. This strategic investment by three blue-chip institutions is a strong endorsement of our plan for value creation. With the benefit of $700 million of additional equity to accelerate our growth, we can capitalize on an acquisition pipeline that’s livelier than expected.”
Related articles: