Ports America, the largest marine terminal operator and stevedore in North America with operations in 70 locations and 33 ports across the U.S., is to become 100% owned by Canada Pension Plan Investment Board (CPP Investments), which has previously been a minority investor in the company, but is now acquiring the rest of it from funds managed by Oaktree Capital Management, L.P.
CPP Investments says it will continue to support Ports America with long-term capital and continuity of ownership.
Jersey City, N.J., headquartered Ports America annually handles 13.4 million twenty-foot equivalent units (TEU) of containers, 10 million tons of general cargo, 2.5 million vehicles and 1.7 million cruise ship passengers.
“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,” said Scott Lawrence, managing director, head of infrastructure, CPP Investments. “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 CEO Mark Montgomery and the management team to support the growth of the business in the upcoming years.”
“At Ports America, our commitment and ability to provide our customers with excellent, safe service and long-term, strategic value informs everything that we do,” said Montgomery, CEO at Ports America. “Our partners at Oaktree and CPP Investments have always shared that commitment, and we look forward to continuing our work with the support of the CPP Investments team as they increase their ownership stake. 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.”
The transaction is subject to satisfaction of certain closing conditions and regulatory requirements and is expected to close by the fourth quarter of 2021.
Canada Pension Plan Investment Board (CPP Investments) is an professional investment management organization that manages the Canada Pension Plan Fund in the best interest of the more than 20 million contributors and beneficiaries of the Canada Pension Plan.