Canada Cartage Acquired By Abu Dhabi-Based Private Equity Firm


One of Canada's largest transportation and logistics providers is being acquired by a United Arab Emirates state-owned investment fund. Abu Dhabi-based Mubadala Capital has reached an agreement to purchase trucking and logistics company Canada Cartage in a deal announced Monday.

Based in the Toronto area, Canada Cartage was founded in 1914. Today, it's one of the largest trucking companies in the country, with 4,000 tractors and trailers, 3,500 employees and a network of 33 terminals, fulfillment centers and cross-docks across Canada.

Cartage Canada features two business units: dedicated transportation and logistics. The dedicated transportation segment manages transportation needs of the customers, allowing them to "realize cost efficiencies and reallocate resources toward core operations," the company said.

The logistics unit provides supply chain solutions, including freight management of both inbound and outbound goods, order and inventory management, warehousing, fulfillment and final delivery to end-customers.

Mubadala Capital is acquiring Canada Cartage from Nautic Partners, which bought the company in 2007. Financial terms of the transaction, which is expected to close in the next 60 days, were not released. 

Adib Martin Mattar, head of private equity at Mubadala Capital, said Canada Cartage boasts a strong track record of success over the last decade.

"We have built our private equity business by partnering with exceptional management teams that run great companies. Canada Cartage is a prime example of both, and one that operates in a sector where we have significant expertise: business services," Mattar said in a statement. "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."  

Jeff Lindsay, president and CEO of Canada Cartage, said the company is excited to partner with Mubadala Capital and continue growing.

"Their team shares our vision of building an industry leader that focuses on innovative supply chain solutions, strong customer partnerships and being a great place for people to work," Lindsay said in a statement.

Established in 2011, Mubadala Capital is the asset management subsidiary of Abu Dhabi, United Arab Emirates-based Mubadala Investment Company, a sovereign investor firm managing a global portfolio of assets valued at $243 billion.

Market News and Data brought to you by Benzinga APIs
Posted In: M&ANewscontributors
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!