Mubadala Capital will acquire Canada Cartage, a leading logistics platform that provides dedicated national fleet solutions, general freight services, managed transportation, fulfillment and distribution, and home delivery services to some of Canada’s largest blue-chip companies in the grocery, food, retail, and e-commerce sectors.
Adib Martin Mattar, Head of Private Equity at Mubadala Capital, said, “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, which is business services.”
Canada Cartage currently operates through a network of 33 facilities across Canada and is comprised of two business segments, Dedicated Transportation and Logistics.
The Dedicated Transportation business provides its customers with expert management of their transportation needs, allowing them to realize cost efficiencies and reallocate resources towards core operations.
This segment secures essential transportation and distribution services that are embedded into customer operations and are predominantly comprised of contracted partnerships with customers that in many cases span decades and multiple economic cycles.
The Company’s Logistics business provides asset-light supply chain solutions including freight management of both inbound and outbound goods, order and inventory management, warehousing, fulfillment, and final delivery to both B2C and B2B end-consumers.
Across both businesses, Canada Cartage is deeply integrated into its customers’ supply chains, which develops and maintains long-term client relationships and operating efficiency.
Scotiabank is acting as exclusive financial advisor to Mubadala Capital and CIBC World Markets is acting as exclusive financial advisor to Canada Cartage.
BMO Capital Markets, Bank of Nova Scotia and RBC Capital Markets acted as Joint Bookrunners and Co-Lead Arrangers for the financing provided to Mubadala Capital.
The transaction is subject to customary closing conditions, including receipt of Canadian regulatory approvals, and is expected to close in the next 60 days.