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Logistec Corp., the Canadian marine cargo handling company, has sealed a momentous deal, as private equity firm Blue Wolf Capital Partners LLC takes the helm in a transaction with a staggering enterprise value of approximately $1.2 billion. The agreement, masterminded by seven prominent firms, heralds a new chapter for Logistec.

Logistec's Transformation into a Private Entity

Under the meticulous terms of this landmark deal, 1443373 B.C. Unlimited Liability Co., an entity managed by Blue Wolf in collaboration with investment firm Stonepeak, will acquire all of Logistec's outstanding shares at a striking price of $67 per share. After more than five decades of being a publicly traded company on the Toronto Stock Exchange, Logistec is poised to delist and transition into a private corporation.

$1.2B Canadian Cargo Sale : Legal Counsel and Advisers

Logistec received legal counsel and advice from Fasken Martineau DuMoulin LLP and K&L Gates LLP, with Stikeman Elliott LLP representing Logistec's special committee to the board of directors. Stonepeak was advised by Sidley Austin LLP, while Davies Ward Phillips & Vineberg LLP acted on behalf of Logistec's principal shareholder, Sumanic. Blue Wolf enlisted the services of McCarthy Tétrault LLP and Willkie Farr & Gallagher LLP.

Logistec's Versatility in Cargo Services

Logistec is renowned for its specialized container cargo services provided to the marine community and industrial companies. With operations spanning 60 ports and 90 terminals across North America, Logistec doesn't stop at cargo services; it also offers environmental solutions such as renewing underground water mains, dredging, dewatering, and managing contaminated soils and materials.

President and CEO's Vision for the Future

Logistec's President and CEO, Madeleine Paquin, expressed her vision for the future. "Since my father started this business more than 70 years ago, we have grown into industry leaders. 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."

$1.2B Canadian Cargo Sale : The Result of a Strategic Review

This monumental merger is the outcome of a rigorous review of strategic alternatives, initiated by a special committee of independent directors at Logistec, at the behest of its principal shareholder, Sumanic Investments Inc. Both the special committee and the board unanimously concurred that the agreement with Blue Wolf represents the maximum value for shareholders and have strongly recommended shareholder approval. Sumanic, wielding approximately 77% of the voting rights for Logistec's shares, has committed to voting in favor of the deal.

Future Plans and Investments

Upon the successful completion of the deal, Blue Wolf has made a pledge to retain Logistec's head office in Quebec. They intend to collaborate with the existing management teams to stimulate growth and invest over $200 million in capital expenditures and growth initiatives in the foreseeable future. Bennet Grill, a principal at Blue Wolf, enthusiastically exclaimed, "Blue Wolf is excited to enter the Quebec market with this acquisition, which represents excellent prospects for continued growth for both of the corporation's business segments and throughout North America."

$1.2B Canadian Cargo Sale : Financing the Deal

Blue Wolf intends to finance its part of the deal through capital managed on behalf of its limited partners, via private equity fund capital, select co-investors, and an additional preferred investment from Stonepeak.

Anticipated Closing in 2024

This significant agreement is slated to conclude in the first quarter of 2024, subject to customary closing conditions, including regulatory approvals and clearances in both Canada and the U.S., Logistec shareholder approval, and court endorsement.

TD Securities Inc. and Blair Franklin Capital Partners Inc.

TD Securities Inc. played a pivotal role as the exclusive financial adviser to Logistec. Full legal counsel information for Fasken Martineau and K&L Gates was not available at the time of reporting. Blair Franklin Capital Partners Inc. acted as the independent financial adviser to Logistec's special committee.

$1.2B Canadian Cargo Sale : Key Players in the Legal Landscape

Stikeman Elliott's team advising the special committee included partner David Massé, while Davies Ward's team advising Sumanic featured corporate/public M&A partner Brian Kujavsky and tax partners Marie-Emmanuelle Vaillancourt and Rhonda Rudick. Rothschild & Co. assumed the role of exclusive financial adviser to Blue Wolf. Willkie's team advising Blue Wolf was spearheaded by partner Laura Delanoy, with full legal counsel information for the McCarthy Tétrault team advising Blue Wolf pending.

Stonepeak and Sidley Austin's Expertise

The Sidley Austin team advising Stonepeak was composed of energy and infrastructure partners Tim Chandler and Daniel Allison, along with tax partner Angela Richards.

In a monumental shift, the $1.2 billion Canadian cargo giant, Logistec Corp., is set to sail into a new era as Blue Wolf Capital Partners takes the helm. The transformative deal is a testament to Logistec's remarkable journey, with promises of growth and environmental responsibility.