Mubadala Capital, the asset management subsidiary of Abu Dhabi’s Mubadala Investment Company, has signed an agreement to acquire Ontario-based logistics company Canada Cartage, as it seeks to boost its presence in the supply chain industry.
The financial details of the transaction, which is expected to close in 60 days, were not disclosed. It is subject to customary closing conditions, including receipt of Canadian regulatory approvals, a joint statement on Monday said.
Canada Cartage plays a “critical role in Canada’s economy by supporting a wide range of essential sectors through economic cycles”, Adib Mattar, head of private equity at Mubadala Capital, said.
Founded in 1914, Canada Cartage operates through a network of 33 facilities across the country. It provides national fleet solutions, general freight services, managed transportation, fulfilment and distribution, and home delivery services to some of Canada’s largest companies in the grocery, food, retail and e-commerce sectors.
The company has a workforce of more than 4,000 people. With a national network of terminals, cross-docks and distribution centres, it is one of Canada’s largest supply chain service providers.
“The events of the last two years have reinforced how important it is to effectively manage the supply chain, for companies as well as consumers," Mr Mattar said.
"We look forward to continuing to work with Canada Cartage’s management team, employees and customers to build on the company’s strong legacy and support its next phase of growth."
Canada Cartage has two business segments ― dedicated transportation and logistics.
The dedicated transportation division manages transportation needs of the customers, allowing them to "realise cost efficiencies and reallocate resources towards core operations", the company said.
Meanwhile, the logistics arm provides supply chain solutions, including freight management of both inbound and outbound goods, order and inventory management, warehousing, fulfilment and final delivery to end-consumers.
Scotiabank is acting as exclusive financial adviser to Mubadala Capital and CIBC World Markets is doing likewise with Canada Cartage for the deal.
“We are excited to partner with Mubadala Capital to help us to continue building a world-class transportation and logistics business,” Jeff Lindsay, president and chief executive of Canada Cartage, said.
Set up in 2011, Mubadala Capital has grown significantly in scale over the past decade, with offices across the world.
It manages $16 billion in aggregate across its own balance sheet investments and in third-party capital vehicles on behalf of institutional investors. This includes four private equity funds, three early-stage venture funds and two funds in Brazil focused on special situations.
Earlier this year, it invested in Australian company SX Global, which is set up to promote the next FIM Supercross World Championship.
Last August, Mubadala Capital closed its $1.6bn third private equity fund that will focus on investing in sectors such as media, sports, consumer and food services across North America and Europe.
