Oaktree Liquidates Position in Ports America, Company Finds Home with CPP Investments
Posted on 09/29/2021
Canada Pension Plan Investment Board (CPP Investments) entered into a definitive agreement to become the 100% 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 an existing minority investor in Ports America since 2014 holding a 9.4% stake and will continue to support the business with long-term capital and continuity of ownership as the Company deepens its focus on providing safe, secure and efficient service for all of its shipping line and beneficial cargo owner customers. The deal values Ports America at over US$ 4 billion, according to various estimates.
Since its founding in 1921, Ports America has driven a century’s worth of innovation in stevedoring, cargo handling, and terminal operations. At the moment, Ports America is the largest terminal operator in North America, with diversified operations across the country, including 70 locations in 33 ports on each of the United States’ three coasts. Ports America annually handles 13.4 million twenty-foot equivalent units (TEUs), including 10 million tons of general cargo, 2.5 million vehicles and 1.7 million cruise ship passengers. Ports America employs a highly trained workforce with expertise in providing premium and flexible terminal operations and stevedoring services across these categories.
The transaction is subject to satisfaction of certain closing conditions and regulatory requirements and is expected to close by the fourth quarter of 2021.
Highstar Capital
In 2019, Oaktree Capital Management acquired the private equity interests of Highstar Capital Fund III for US$ 1.3 billion in a secondary transaction. This deal formed the Highstar Capital Fund III Continuation Fund. Oaktree Capital Management ended up getting control of Ports America, the last remaining investment in Highstar Capital Fund III. Campbell Lutyens advised Oaktree Capital Management in the 2019 secondaries transaction.