Logistec sold to investor group

Logistec Corporation is being purchased for $1.2 billion.

1443373 B.C. Unlimited Liability Company, an entity owned by funds managed by Blue Wolf Capital Partners LLC in partnership with Stonepeak, an investment firm specializing in infrastructure and real assets, is acquiring all issued and outstanding shares of Logistec for $67.00 in cash per share, representing a total enterprise value of approximately $1.2 billion.

The offer represents a 61.2% premium to the unaffected 20‑day volume-weighted average trading price per Class A Common Share and a 62.2% premium to the unaffected 20-day volume-weighted average trading price per Class B Subordinate Voting Share on the Toronto Stock Exchange on May 19, 2023, the last trading day prior to the announcement of the strategic review process, and a 14.5% premium to the 20-day volume-weighted average trading price per Class A Common Share and a 9.9% premium to the 20-day volume-weighted average trading price per Class B Subordinate Voting Share on the Toronto Stock Exchange on October 13, 2023.

“Since my father started this business more than 70 years ago, we have grown into industry leaders,” said Madeleine Paquin, president and CEO of Logistec.

“As we enter this next phase of our journey, we will continue to build a sustainable future by facilitating trade, handling our customers’ goods safely, and protecting our environment as well as our water resources for the next generation. We see significant opportunity to collaborate with Blue Wolf to drive value creation for our people, our customers, and our communities while rewarding our existing shareholders with an attractive cash consideration providing immediate and fair value for their shares.”

Mark Rodger, Logistec’s chairman of the Board of Directors aid the board unanimously concluded that the transaction is fair to the company’s shareholders and employees.

“Blue Wolf is excited to enter the Québec market with this acquisition, which represents excellent prospects for continued growth for both of the corporation’s business segments and throughout North America,” said Bennet Grill, principal at Blue Wolf.

Natalie Marjancik, Partner at Blue Wolf, added, “We are committed to maintaining Logistec’s core values of quality and innovative services, respect for people and the environment. We look forward to continued growth and working alongside the current management teams in place in Québec and elsewhere.”

Blue Wolf said in a statement it plans to maintain Logistec’s head office in the Province of Québec and will work with the current management teams. It plans investments of more than $200 million in capital expenditures and growth initiatives.

Blue Wolf is funding its portion of the purchase price with capital it manages on behalf of its limited partners via private equity fund capital as well as select co-investors, together with an additional preferred investment in the Purchaser by Stonepeak.

“The specialized services Logistec provides through its terminal operations to a diversified global customer base make it a quality infrastructure asset,” said James Wyper, senior managing director at Stonepeak.

“Between its Marine Services and Environmental Services business, which is focused on rehabilitating aging water infrastructure and remediating soil, we believe in the compelling opportunities for growth. We are excited to support the corporation, in partnership with Blue Wolf, in its next chapter.”

“The gouvernement du Québec through Investissement Québec is in discussion with Blue Wolf for a potential investment in the Corporation,” said Guy LeBlanc, president and CEO of Investissement Québec (IQ). “IQ’s potential participation in the Corporation will support Blue Wolf’s commitment to maintain Logistec’s headquarters and operations in Québec and to continue to make investments in Québec. We would like to thank and congratulate the Paquin Family for having built a sector champion solidly anchored in Québec.