RoadLink to buy Canadian drayage company
RoadLink, a fast-growing intermodal container delivery and logistics provider, said Thursday it plans to acquire CP Ships Trucking Ltd. from Hapag-Lloyd (Canada).
The German ocean carrier is selling its 240-unit trucking fleet to concentrate on its core business, RoadLink said.
RoadLink will collaborate on drayage operations with Fastfrate, a less-than-truckload carrier and import consolidator that is also owned by private equity firm Fenway Partners. RoadLink will also tie into Fastfrate’s cross-border network.
“The acquisition will enhance service capabilities as we deliver single point-of-contact solutions to complex transportation and warehousing challenges,” said Chris Munro, RoadLink chief executive officer.
The deal must be reviewed and approved by Canadian authorities who assess the economic impact of foreign investment in the country. Transaction terms were not disclosed.
C-Truck, which operates from six locations, became part of Hapag-Lloyd following the acquisition of CP Ships in 2005.
“Hapag-Lloyd's decision to divest C-Truck presented RoadLink with an opportunity that could not have occurred at a more opportune time as we were looking to increase RoadLink's Canadian/North American footprint. We saw the acquisition, coupled with our knowledge of both portfolio companies, as a way to generate synergies, driving mutually increased business value,' said Marc Kramer, managing director at Fenway Partners.