Mergers & Acquisitions
AMP Capital, an Australian investment firm with over $137 billion in funds under management, has completed its largest ever North American deal, buying logistics company ITS ConGlobal (ITSC) from the Carlyle Group for an undisclosed sum.
A Reuters report suggested the deal was worth more than $500m, citing unnamed sources.
The company has been acquired on behalf of investors in AMP Capital’s global infrastructure equity platform, which includes a $2.4 billion Global Infrastructure Fund.
Headquartered in Illinois, ITSC operates intermodal railroad and auto terminals, container yard depots, and provides intermodal equipment maintenance and repair services. It has operations in 90 locations around the US and a presence in Mexico and Costa Rica.
Amongst its businesses is American Auto Works (AAW), originally known as Ramp Management and acquired by ITS Technologies & Logistics in 2011, when it was rebranded.
In addition to vehicle loading and unloading, AAW also performs railcar switching, railcar prep, auto reconditioning, and origin-and-destination terminal services. The company says it handles 1.5m vehicles a year.
AMP Capital’s head of Americas Infrastructure Equity, Dylan Foo said: “This deal marks an acceleration of our North American growth strategy and also reflects the momentum in our global growth ambitions. We’re thrilled to have been able to secure this excellent asset for our investors and look forward to applying our considerable expertise in rail and transportation to help grow the company.”
He added that the company would continue to look for opportunities in the US.
“Our focus remains on the middle market, which is where we see the greatest value and opportunity. Sectors that we are continuing to focus on in North America include transportation, energy and communications where there is an exciting pipeline of deals.”
In September, the Carlyle Group acquired North American finished vehicle transport and logistics provider United Road Services from Charlesbank Capital Partners for an undisclosed sum.
The private equity and alternative asset management giant said it bought the company via its Equity Opportunity Fund II, a $2.4 billion fund that invests in middle-market companies in the US that require equity capital of $20m to $200m per transaction.