Ontario Pension Buys Trucking and Logistics Company in $2 Billion Deal

The Ontario Municipal Employees Retirement System has struck a deal to buy Kenan Advantage Group Inc, a trucking and logistics company, from Goldman Sachs’ private equity arm.

The deal could be worth in the ballpark of $2 billion, according to a Wall Street Journal report.

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Omers is buying Kenan from majority owners Goldman Sachs Group Inc.’s private-equity arm and Centerbridge Partners LP, which The Wall Street Journal reported earlier this year were exploring a sale or initial public offering of the Canton, Ohio-based company.

Financial terms of the deal, which is expected to close in the third quarter, weren’t disclosed. People familiar with the matter told The Wall Street Journal in February that Kenan could sell for up to $2 billion, including debt.

Kenan provides liquid bulk-transportation services to the fuels, chemicals, liquid foods and merchant-gas markets throughout the U.S. and in Western Canada. It had revenue for the 12 months ended March 31 of about $1.5 billion, according to Moody’s Investors Service.

Kenan is a “very strong addition” to Omers’s growing industrial portfolio and aligns well with the fund’s strategy of choosing assets with “excellent long term fundamentals,” said Michael Graham, senior managing director of the pension fund’s private-equity arm.

OMERS manages about $59 billion in assets.

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