LOGISTEC Corporation has entered into an arrangement agreement with 1443373 B.C. Unlimited Liability Company, an entity owned by certain funds managed by Blue Wolf Capital Partners LLC, in partnership with Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets. The purchaser will acquire all the issued and outstanding shares of the LOGISTEC for $67.00 in cash per share, representing a total enterprise value of approximately $1.2 billion, subject to customary closing conditions.
The agreement is the culmination of a robust review of strategic alternatives available to maximize shareholder value that was conducted by a Special Committee of independent directors of the corporation at the request of its principal shareholder, Sumanic Investments Inc.
“Since my father started this business more than 70 years ago, we have grown into industry leaders,” said Madeleine Paquin, president and CEO of LOGISTEC. “As we enter this next phase of our journey, we will continue to build a sustainable future by facilitating trade, handling our customers’ goods safely, and protecting our environment as well as our water resources for the next generation. We see significant opportunity to collaborate with Blue Wolf to drive value creation for our people, our customers, and our communities while rewarding our existing shareholders with an attractive cash consideration providing immediate and fair value for their shares.”
Blue Wolf’s business plan is anchored in making significant contributions to the business and to the Québec and Canadian economy, including:
- Maintaining LOGISTEC’s head office in the Province of Québec;
- Working with the current management teams to drive continued growth in the operations and employment of the business;
- Future investment of more than $200 million in capital expenditures and growth initiatives; and
- Continuing contributions to current charitable and social causes in Québec supported by LOGISTEC.
“Blue Wolf is excited to enter the Québec market with this acquisition, which represents excellent prospects for continued growth for both of the Corporation’s business segments and throughout North America,” said Bennet Grill, principal at Blue Wolf.
Natalie Marjancik, partner at Blue Wolf, added, “We are committed to maintaining LOGISTEC’s core values of quality and innovative services, respect for people and the environment. We look forward to continued growth and working alongside the current management teams in place in Québec and elsewhere.”
Blue Wolf is funding its portion of the purchase price with capital it manages on behalf of its limited partners via private equity fund capital as well as select co-investors, together with an additional preferred investment in the Purchaser by Stonepeak.
“The specialized services LOGISTEC provides through its terminal operations to a diversified global customer base make it a quality infrastructure asset,” said James Wyper, senior managing director at Stonepeak. “Between its Marine Services and Environmental Services business, which is focused on rehabilitating aging water infrastructure and remediating soil, we believe in the compelling opportunities for growth and in the future success of LOGISTEC. We are excited to support the Corporation, in partnership with Blue Wolf, in its next chapter.”
Featured image credit: LOGISTEC Corporation.
