Canada's CPPIB to buy Oaktree's Ports America in deal worth over $4 billion- sources

(Reuters) -Canada Pension Plan Investment Board on Wednesday agreed to buy marine terminal operator Ports America from investment firm Oaktree Capital Management LP.

The deal values Ports America at over $4 billion, according to two sources familiar with the matter.

Under the terms of the deal, which is expected to close by the end of the year, the Canadian pension manager will take full ownership of Ports America.

CPPIB had previously held a 9.4% stake in Ports America.

“Ports America’s growth, track record of innovation and strong financial profile have positioned the company for success in today’s cargo management and terminal operations environment, and we fully expect the business will only benefit from this new ownership structure,” said Emmett McCann, managing director and co-portfolio manager of Oaktree’s Infrastructure Investing strategy.

Currently, Oaktree has around $156 billion in assets under management.

Founded a century ago, Ports America is one of the largest marine cargo operators in the country and has operations in 70 locations across 33 ports in the United States.

The Jersey City, New Jersey-based company currently handles 13.4 million twenty-foot equivalent units (TEUs) annually, which includes 10 million tons of cargo, 2.5 million vehicles and 1.7 million cruise ship passengers.

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