Canadian Pacific Railway (CP) has acquired Steelcare, one of Canada’s largest steel transload facilities, from Argosy Partners. The transaction includes TransCare Logistics Corporation, Prometheus Six Inc. and East Port Warehousing & Distribution.
Steelcare is a transload and distribution hub providing transloading, warehousing and distribution services of steel products. Steelcare’s Plant Six facility in CP’s Aberdeen yard in Hamilton, ON is a 168,000-square-foot facility featuring two drive-through rail and truck loading and unloading areas. Steelcare has the capacity to handle up to 1.5 million tons annually of rail transload products and has annual revenues of approximately $10 million. The company is headquartered in Hamilton, ON – the busiest Great Lakes port in Canada (www.steelcare.com).
“CP is committed to exceptional customer service and with direct ownership of Steelcare, we are better equipped to manage our own supply chain and utilize our in-house expertise,” said James Clements, CP Vice President of Strategic Planning and Transportation Services.
Argosy invests from $5 million to $15 million in lower middle market companies that have revenues of $10 million to $100 million and EBITDA margins of 10% or greater. Sectors of interest include manufacturing, business services, and value-added distribution. The firm was founded in 1990 and is headquartered in the Philadelphia suburb of Wayne, PA (www.argosycapital.com).
Canadian Pacific (TSX:CP)(NYSE:CP) is a transcontinental railway operating in Canada and the United States with direct links to eight major ports, including Vancouver and Montreal. The company is headquartered in Calgary (www.cpr.ca).
© 2015 PEPD • Private Equity’s Leading News Magazine • 10-2-15
