July 21, 2022
Freight

AIMCo Acquiring Cando Rail & Terminals

Written by Marybeth Luczak, Executive Editor

“We are delighted with the success of our partnership with TorQuest and excited about the next chapter of our business evolution in partnership with AIMCo,” said Brian Cornick, President and CEO of Cando Rail & Terminals Ltd. “We look forward to continuing to support our customers and benefitting from AIMCo’s considerable experience, relationships and resources.”

Alberta Investment Management Corporation (AIMCo) of Canada will acquire a 100% equity stake in Cando Rail & Terminals Ltd. from TorQuest Partners (TorQuest), a Canadian private equity fund manager. Terms of the deal were not disclosed.

The transaction—subject to customary regulatory approvals—is expected to close in late third-quarter or fourth-quarter 2022, AIMCo and TorQuest reported on July 20. There will be no changes to Cando Rail & Terminal Ltd.’s operations or management.

Headquartered in Brandon, Manitoba, Cando Rail & Terminals Ltd. operates a network of more than 40 industrial rail yards, nine owned terminals, and the 67-mile Central Manitoba Railway.

“Cando is the type of platform investment that has become the hallmark of AIMCo’s infrastructure portfolio,” said Ben Hawkins, Head of Infrastructure, Renewables and Sustainable Investing at AIMCo. “With this investment, our clients add one of Canada’s most successful rail platforms to their infrastructure portfolios. We believe in Cando’s incredible potential and look forward to collaborating with their exceptional management to realize a continued track record of growth.”

“Our investment in Cando exemplifies TorQuest’s strategy of partnering with great people and investing in our businesses to achieve exciting results,” TorQuest Partner Jonathan Fraser said. “Cando is a wonderful business, with wonderful people, and it has been a pleasure for us to partner with Brian Cornick, Steve Bromley, and all of the employees and employee shareholders of Cando.”

Wells Fargo Securities, LLC served as the lead financial advisor to Cando and TorQuest, and Northborne Partners, LLC also served as a financial advisor. Torys LLP and MLT Aikins LLP served as legal advisors to Cando and TorQuest.

RBC Capital Markets served as an exclusive financial advisor to AIMCo on the transaction. Stikeman Elliott LLP, Mayer Brown LLP and Fletcher & Sippel LLC served as legal advisors to AIMCo.