- Region: USA
- Sector: Industrials
- Stage: Special situations
- Type: Secondary
- Fund Vintage: 2017
- Exit Type: Secondary budget
Private Equity Manager (GP)
About the company
Ports America is the largest terminal operator and stevedore (loading and unloading of ships) in North America, handling c.26% of US container throughput. The company provides terminal management and a full range of stevedoring and labour services at more than 70 locations in over 33 ports.
- Diversified portfolio of port terminals based across all major ports in the USA with a presence on all three coastlines: the Atlantic, the Pacific and the Gulf coasts.
- Attractive valuation entry point that was lower than both the long-term sector average and single terminal transaction multiples at the time.
- Pantheon has a long-standing relationship with the private equity manager and has evaluated multiple secondary opportunities with Oaktree Capital Management (“OCM”).
- Pantheon also holds an advisory board seat with OCM.
Active management and value creation
- The new management team that was implemented by OCM has been actively involved in transforming the business from a low-margin stevedoring provider to a higher margin container terminal operator with long-term contracts. The management team was supported by experienced professionals from OCM and was responsible for undertaking transformational acquisitions, removing redundancies and building a network of contracts to ensure stable cash flows.
- During the investment period, EBITDA margin expansion from 12% to 23% was achieved through:
- Cost savings through reductions in back office and support services.
- Exit of low margin sites.
- Optimisation of terminal layouts and expansion of terminal capacities.
- Ports America was acquired by the Canada Pension Plan Investment Board in November 2021, providing a full exit for OCM and for PIP.
You may also like
PIP's global, diversified portfolio gives exposure to many high quality managers, sectors and companies.Find out more
Our investment process
We have a rigorous and detailed approach to selecting our private equity managers and assessing deals.Find out more