CPP Investments to become sole owner of Ports America

Canada Pension Plan Investment Board (CPP Investments) has entered into a definitive agreement to become the 100% owner of Ports America, North America’s largest marine terminal operator, by acquiring interest from funds managed by Oaktree Capital Management, L.P.

CPP Investments has been an existing minority investor in Ports America since 2014.

CPP Investments
Image Courtesy: CPP Investments

The investment management organization said it would continue to support the business with long-term capital as the company deepens its focus on providing efficient service for all of its shipping line and beneficial cargo owner customers.

“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,” Scott Lawrence, Managing Director, Head of Infrastructure, CPP Investments, said.

“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.”

Founded in 1921, Ports America is today the largest terminal operator in North America, with diversified operations across the country, including 70 locations in 33 ports on each of the United States’ three coasts.

The company annually handles 13.4 million twenty-foot equivalent units (TEUs), including 10 million tons of general cargo, 2.5 million vehicles and 1.7 million cruise ship passengers.

“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,” Mark Montgomery, Chief Executive Officer at Ports America, commented.

“Ports America’s growth, track record of innovation and strong financial profile have positioned the company for success in today’s cargo management and terminal operations environment, and we fully expect the business will only benefit from this new ownership structure,” Emmett McCann, Managing Director and Co-Portfolio Manager of Oaktree’s Infrastructure Investing strategy, added.

The transaction is subject to satisfaction of certain closing conditions and regulatory requirements and is expected to close by the fourth quarter of 2021.