Two private New York investment firms are teaming up to offer to buy Logistec, a Montreal-based maritime and environmental services company that has been examining its strategic options since the spring.
The proposal from Blue Wolf Capital Partners in partnership with the firm Stonepeak amounts to $67 per share, giving Logistec an enterprise value of $1.2 billion.
That’s the equivalent of a 17% premium to the price at market close on Friday and a 53% premium to the share price before the strategic review process was announced on May 19.
That day, Logistec revealed that the controlling shareholder, that is to say the Paquin family, wishes to sell its shares.
Logistec was founded by the late Roger Paquin over 70 years ago. His daughter Madeleine has run the business for 27 years and has been a board member for 36 years. Suzanne Paquin, Madeleine Paquin’s sister, has been a board member for 36 years and runs a shipping company partly owned by Logistec. Their sister Nicole has been an administrator at Logistec for 19 years.
Investissement Québec is in discussions with Blue Wolf for a potential investment in the company. The potential participation of Investissement Québec would support Blue Wolf’s commitment to maintaining Logistec’s head office and operations in Quebec and continuing investments in the province.
Blue Wolf says it intends to make a future investment of more than $200 million in capital expenditures and growth initiatives to “make a significant contribution to the business as well as the economy of Quebec and Canada.”
Logistec posted a net profit up 18%, to 54 million, in 2022 on a turnover up 21% which came close to 900 million.
The maritime services sector handled historic cargo volumes last year due to supply chain disruptions.
Businesses in the environmental sector were built from almost scratch and today generate a turnover in excess of 330 million.
The second largest shareholder in Logistec, behind the Paquin family, is the Caisse de dépôt et placement du Québec.
