Canada Pension Plan Investment Board (CPP Investments) has struck a deal with Oaktree Capital Management to take over full control of Ports America, the largest US terminal operator.
The deal is worth over $4bn, Reuters reported, citing two sources familiar with the matter.
Founded in 1921, Ports America has 70 locations in 33 ports across the country. The company annually handles 13.4m teu, 10m tons of general cargo, 2.5m vehicles and 1.7m cruise ship passengers. It has a network of 28 container terminals in 18 ports, including Los Angeles, New York/New Jersey, Baltimore and Miami and holds around one third of the US container market share.
“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.”
CPP Investments has been an existing minority investor in Ports America since 2014. The transaction is expected to close by the fourth quarter of 2021.