Alberta Investment Management Corporation Acquires 100% Stake in Cando Rail & Terminals from TorQuest Partners and Cando Employees

Posted on 07/22/2022

Revealed on July 20, 2022, TorQuest Partners and Alberta Investment Management Corporation, on behalf of certain of its clients, (AIMCo) announced the signing of a definitive agreement that would see AIMCo acquire a 100% equity stake in Cando Rail & Terminals Ltd., one of North America’s largest owners and operators of first and last mile rail infrastructure.

Cando, founded in 1978 and headquartered in Brandon, Manitoba, serves as a critical and integrated link in the rail supply chain, connecting large industrial shippers to the Class I rail network. The Company operates an inter-connected network of 40+ industrial railyards, nine owned terminals and one short-line railroad. This network, along with 900+ employees and 100+ locomotives, allows Cando to deliver significant benefits to both shipper-customers and Class I partners. The Company, long a proponent of the benefits of broad-based employee ownership, has more than 400 active employee shareholders, who collectively own 25% of the business. There will be no changes to the company’s operations or management as a result of the transaction, and Cando remains committed to investing in its rail infrastructure in order to enhance customer service.

The transaction, which is subject to customary regulatory approvals, is expected to close in late Q3 or Q4 2022. Financial terms of the transaction were not disclosed.

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.

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