Logistec Corporation announced the expansion of its network of terminals through the strategic acquisition of Gulf Stream Marine.
This transaction will allow Logistec to establish a stronghold in the U.S. Gulf, strengthen its position in a high-growth market in the United States, provide access to an experienced talent pool, facilitate knowledge transfer between the two organizations, and generate immediate positive benefits to shareholders.
This acquisition also represents a major expansion of our network of terminals in the USA. With Gulf Stream Marine's 10 terminals in 5 ports, Logistec's cargo handling activities now cover 58 terminals in 35 ports in North America.
Headquartered in Houston, Texas, Gulf Stream Marine is a leader in cargo handling, stevedoring and terminal operations in the U.S. Gulf Coast region
. For the year ended October 31, 2017, the ultimate parent company of Gulf Stream Marine, GSM Maritime Holdings (GSM), generated revenue of US$68.7 million (approximately CA$87.7 million) and an adjusted EBITDA of US$8.2 million (approximately CA$10.5 million).
"Combining Logistec and Gulf Stream Marine will bring together two highly complementary businesses to deliver greater value, service and innovation to customers. It builds on Logistec's longstanding track record of successful operations in Canada
and in the eastern USA and from Gulf Stream Marine's unmatched presence in the U.S. Gulf, as well as its leadership in operational excellence," explained Madeleine Paquin, President and Chief Executive Officer of Logistec.
"We see great synergies in joining forces. It provides an excellent platform for growth and development," said Kevin Bourbonnais, President and CEO of Gulf Stream Marine.
"This unique combination of services, linked by water, is brought to life by the dedication of Logistec's people and now more than 2,300 people across North America
, from the Arctic to Brownsville, Texas, plus key industry partners, who together strive every day to go beyond for their customers. The future is bright for the Logistecfamily," added Madeleine Paquin.
The acquisition was effected through the merger of a wholly-owned subsidiary of Logistec with GSM, pursuant to which Logistec acquired 100% of the shares of the merged entity and GSM shareholders received aggregate cash consideration of US$65.7 million (approximately CA$83.9 million), subject to adjustments.