(Bloomberg) – The Canada Pension Plan Investment Board has reached a deal to buy full control of Ports America, the largest terminal operator in the United States, from Oaktree Capital Management.
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The deal, which gives Canada’s largest pension fund 100% ownership, values the company at around $ 4 billion, including debt, according to a person familiar with the matter. Oaktree had explored the sale at a valuation of $ 5 billion to $ 6 billion, people with knowledge of the matter told Bloomberg in April.
“Ports America represents the opportunity to continue investing 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,” Scott Lawrence, head of infrastructure at CPPIB, said in a statement. The fund currently owns just under 10% of the company.
Ports America, based in Jersey City, New Jersey, headed by managing director Mark Montgomery, operates 33 US ports in cities such as Los Angeles, Miami and Freeport, Texas. The company manages 2.5 million vehicles, 10 million tonnes of general cargo and 1.7 million cruise passengers per year.
Oaktree’s infrastructure arm inherited Ports America with the company’s purchase of Highstar Capital in 2014, which owned the company with a fund raised in 2007. Canadian-based Brookfield Asset Management Inc. bought a controlling stake in Oaktree in 2019.
The transaction is subject to closing conditions and regulatory requirements and is expected to be finalized by the fourth quarter, the statement said.
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