British Columbia Investment Management Corp. (BCI) is investing in US transportation and shipping company PS Logistics, in partnership with a middle market investment firm, Gamut Capital Management.
Terms of the transaction were not disclosed by the Canadian institutional investor and New York-based private equity firm Gamut Capital, but the deal is expected to close in this year’s third quarter, Gamut said last week.
“As a long-term investor, we seek market-leading companies with a demonstrated track record of creating shareholder value,” Aaron Papps, senior portfolio manager at BCI, said in a statement. “We look forward to working with the founder-led management team and Gamut to support the company’s future growth.”
Headquartered in Alabama, PS Logistics provides flatbed transportation of goods across the US and specializes in irregular routes that carry cargo to wherever destination it needs to go, the firm said.
Recently, PS Logistics has been expanding its business into other parts of the continental US. In March, the flatbed shipping company disclosed that it had purchased “substantial” assets from Jason Jones Trucking and acquired the company’s fleet of 38 tractors that operate in the eastern United States.
Interest in the logistics sector has not dampened among investors who are betting on the continued growth of e-commerce. This year, industrial real estate investment trusts (REITs) such as warehouses and distribution centers have jumped 16.7% year to date.
About 10%, or US$14.5 billion (C$17.9 billion) of the US$139 billion (C$171.3 billion) in assets that BCI has under management, is invested in private equity. The Canadian allocator takes a sector focus into the industrial, health care, financial and business services, technology, and retail sectors.