Enstructure acquires LOGISTEC’s marine terminal operations

A mega-deal creates a mega-terminal group.

In the marine terminal business, particularly in North America, mega-deals don’t come along very often. And when a mega-deal happens, it is a surprise.

So, on June 15th, when Enstructure, a Wellesley, Massachusetts-based terminal operator announced the acquisition of LOGISTEC, a Montreal, Quebec-based-terminal company — it was a surprise and represented one of the biggest North America marine terminal deals in decades.

Although the details of the transaction weren’t released, the merging of the operations of the two terminal operators will create one of the largest and most comprehensive terminal enterprises in North America. And it comes at a time, when the value of logistics assets in North America is ascending to meet demands of the supply chain.

LOGISTEC has since its founding by Roger Paquin in 1952 grown to be one of the largest multi-purpose terminal companies in North America, with a portfolio of facilities that includes bulk, breakbulk and container operations and even transportation services in the Arctic. The terminal operator has facilities located in 62 ports and 84 terminals across the US and Canada and is majority owned by New York-based private equity firm, Blue Wolf Capital Partners LLC (Blue Wolf). Following the transaction, Blue Wolf will remain an investor in the combined Enstructure and LOGISTEC business.

Enstructure, is a relatively new operator compared to many national and international terminal operators, having opened its doors in 2016 and subsequently purchased its first terminal, CD Terminals in Wiona, Minnesota, in 2017. The privately held Enstructure was founded by Co-CEOs Philippe De Montigny and Matthew Satnick, which rapidly built the terminal operator through a wide range of diverse acquisitions which included terminals, warehouses and cold storage facilities along key corridors of the US. From that single terminal on the Mississippi River, Enstructure remarkably has built a network of 22 terminals and related logistics businesses in less than a decade.

Although the mega-deal was surprising, in many respects it shouldn’t be startling. For example, Enstructure’s Co-CEO Philippe De Montigny himself is a Montréal native. De Montigny noted in the release of the deal the importance of LOGISTEC to Quebec and Canada, “This transaction provides the investment and support needed to drive the company’s [Enstructure] next phase of growth while creating opportunities for its employees and the communities it serves across Québec, Canada, and the United States. Enstructure and LOGISTEC share a strong alignment in mission and vision, and we are proud to welcome the LOGISTEC team into the Enstructure network.”

Additionally, “LOGISTEC will maintain its head office in Montréal, and workers’ jobs will be protected. Further the combined company intends to build on LOGISTEC’s longstanding relationships with customers, employees, communities, and port partners to strengthen its presence in Canada and in the US and unlock new opportunities in the maritime industry,” according to the release.

Bennet Grill, Partner and Head of Industrials at Blue Wolf, said of the mega-deal, “LOGISTEC has built an exceptional business and reputation across Canada and North America.” Adding, “We are proud of what the company and its employees have accomplished, and we believe Enstructure is the right long-term partner to support LOGISTEC’s continued growth and success. We look forward to partnering with the Enstructure team as investors in the combined business.” Further, Blue Wolf intends to retain majority ownership and will continue to invest in the growth of CoreAqua and Sanexen, previously LOGISTEC’s Environmental Services division. CoreAqua is a leading provider of trenchless water infrastructure solutions, while Sanexen specializes in environmental services.

On the Enstructure side of the agreement, private equity also played a major role as Viking Global Investors, an investor in Enstructure since 2022, provided incremental equity capital to support the transaction.

“This transaction brings together two highly respected organizations with shared values, complementary operations, and a long-term commitment to investing in marine infrastructure,” said Enstructure Co-CEO Matthew Satnick. “By combining our capabilities, we are creating a stronger North American platform that will enhance supply chain solutions for our customers, support economic growth throughout our geographic regions, and create new growth opportunities for our company and employees.”

Now with the combination of LOGISTEC and Enstructure together, the new network will consist of around 106 terminals primarily located from the Mississippi River to the East Coast and Gulf. As with any mega-merger, integration will take some time, but Enstructure was built through acquisitions which should make the path a little easier.

Ultimately, the bottom line is that the new Enstructure is now one of the few major marine terminal companies in North America, alongside major terminal companies like Carrix-owned SSA and Ports America.