Logistec, a Canadian cargo-services company, has agreed to a takeover by private-equity firm Blue Wolf Capital Partners. The deal values Logistec at approximately 1.2 billion Canadian dollars ($878.5 million).
Following the announcement, Logistec’s shares rose by 12% in morning trading to reach C$64.45. This extends the company’s advance for this year to 55%.
Terms of the Agreement
Under the agreement, Blue Wolf and investment firm Stonepeak will acquire Logistec’s stock for C$67 per share in cash. This represents a 17% increase from the last closing prices and a 57% premium over the price on May 19.
Strategic Review and Approvals
The decision to sell to Blue Wolf came after Logistec launched a strategic review in response to Sumanic Investments considering selling some or all of its investment in the company. Logistec’s board and a special committee concluded that a sale to Blue Wolf was in the best interest of the company, employees, and other stakeholders.
Funding and Government Support
Blue Wolf will finance its portion of the purchase price with managed capital from its limited partners and select co-investors. Stonepeak, an infrastructure and real assets investment firm, will also provide a preferred investment. Additionally, the government of Quebec is discussing a possible investment in Logistec to support Blue Wolf’s commitment to maintain the company’s headquarters and operations in the province.