Private equity firm American Industrial Partners is selling a significant minority stake in Great Lakes shipping firm Rand Logistics to Oaktree Capital Management’s Transportation Infrastructure Investing Group.
Following the acquisition and integration of American Steamship Company in May 2020, Rand now operates 24 vessels between key destinations across the Great Lakes and St. Lawrence Seaway. Annually, Rand delivers over 45m tons of bulk cargoes.
“We are thrilled to partner with Oaktree as we work to realise our vision for Rand as the premier marine and logistics provider in the most important industrial region in the United States, and possibly the world,” said Jason Perri, partner of AIP and Rand’s chairman. “As one of the only infrastructure managers with a strategy dedicated exclusively to transportation assets, Oaktree is positioned to assist AIP and the company in ushering Rand to its next stage of scale and growth, and cementing its position as one of the foremost US and Canadian industrial infrastructure companies. We are excited to welcome them to the Rand team.”
No price details have been revealed in the transaction.
“As part of our mandate to invest in highly defensible, essential transportation infrastructure businesses across the United States, we specifically identified Rand as the optimal Jones Act business for our portfolio. With connectivity to ports across the Great Lakes, we hope to drive connectivity with Watco, one of the largest short-line rail providers in the country, and another anchor investment in our portfolio,” said Emmett McCann, manager of Oaktree’s Transportation Infrastructure Investing strategy, who will be joining the Rand board.