Mergers and Acquisitions

CPP Investments To Acquire Remaining Stake In Ports America

The Canada Pension Plan Investment Board (CPP Investments) announced September 29 that it has entered into a definitive agreement to become the 100 percent owner of Ports America, North America’s largest marine terminal operator, through the acquisition of an interest from funds managed by Oaktree Capital Management L.P.

CPP Investments has been a minority investor in Ports America since 2014 and will continue to support the business with long-term capital and continuity of ownership, CPP said in the announcement.

Founded in 1921, Ports America has diversified operations across the country, including 70 locations in 33 ports. In addition to numerous large ports on the east and west costs, the company is the terminal operator/stevedore at the Gulf Coast ports of Galveston and Houston, Texas; New Orleans and Baton Rouge, Louisiana; Gulfport, Miss.; and Tampa, Fla. Ports America is also the stevedore at the Texas ports of Beaumont and Freeport. 

The company annually handles 13.4 million 20-foot equivalent units (TEUs), including 10 million tons of general cargo, 2.5 million vehicles and 1.7 million cruise ship passengers.

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“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 Mark Montgomery, CEO of 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.”

“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 and head of infrastructure for 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.”

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