Morgan Stanley Infrastructure Partners has agreed to sell Montreal Gateway Terminals (MGT), its container facility in the Port of Montreal which it acquired in 2007, to a consortium led by Fiera Axium Infrastructure Inc. an infrastructure investor based in Montreal.
The deal, which could achieve more than US$600m, is expected to be announced later this month (January), according to reports in the Wall Street Journal, which first revealed the potential sale in May last year.
At present the status of the sale is unknown, although it is understood that Fiera Axium and its partners are paying a multiple of about 16 to 17 times MGT’s earnings before interest, taxes, depreciation and amortisation for the facility.
MGT handles around 57% of all container traffic at the Port of Montreal, Canada’s second-largest port, which benefits from being closer to key European ports than rival US East Coast terminals; in addition to truck movements, containers are moved into the western Canada and the US hinterland by rail.
Fiera Axium’s equity partners include Desjardins Group and Fonds de Solidarité, two Quebec-based financial institutions. Canada’s Bank of Montreal is providing debt financing.
In 2007 Morgan Stanley Infrastructure Partners acquired an 80% stake from Germany’s TUI AG, purchasing the remaining 20% stake from Hapag-Lloyd AG, TUI’s container shipping line, in 2013.
(Source: Wall Street journal)