Logistec Corporation, the Montreal-based provider of marine and environmental services, has expanded its North American network of terminals through the strategic acquisition of Texas-based Gulf Stream Marine for US$65.7 million.
Announced on March 1, the transaction means that Logistec’s cargo-handling activities will now encompass 58 terminals in 35 ports with the addition of Gulf Stream’s 10 terminals in five ports. Prior to this latest investment, Logistec operations were concentrated in eastern Canada and on the U.S. East Coast. It will enlarge its personnel total to approximately 2,300 from 1,600.
“Combining Logistec and Gulf Stream Marine will bring together two highly complementary businesses to deliver greater value, service and innovation to customers,” said Madeleine Paquin, president and CEO of Logistec. A company press release added it will “strengthen Logistec’s position in a high-growth market in the United States” and “provide access to an experienced talent pool.”
“We see great synergies in joining forces,” concurred Kevin Bourbonnais, president and CEO of Gulf Stream. Headquartered in Houston, the latter is a major stevedoring and terminal operator, with facilities in the Houston area, Corpus Christi, Freeport, Brownsville, and Lake Charles, Louisiana, handling breakbulk, bulk and containerized cargoes. For the year ended October 31, 2017, Gulf Stream Marine’s parent company, GSM Maritime Holdings, recorded revenue of US$68.7 million.
In a recent interview, Paquin suggested that “the status quo is doomed. If you sit still, you may not be there in 10 years – so we strive to grow in a sustainable way.”
In fact, Logistec’s consolidated revenue has increased from C$212 million in 2012 to C$343 million in 2016. Industry observers expect the final tally for 2017 to exceed C$400 million for the first time. A key factor in this surge stems from a majority investment last July in Toronto-based FER-PAL Construction, a trenchless technology enterprise. Through its subsidiary, Sanexen Environmental Services, Logistec provides environmental services to industrial, municipal, and governmental customers for such undertakings as the trenchless structural rehabilitation of underground water mains and site remediation.
In addition to its bulk, breakbulk and containerized cargo services, Logistec provides marine transportation geared primarily to the Arctic coastal trade along with short-line rail services and marine agency services to foreign carriers serving the Canadian market.
Mounting U.S. coastal presence
South of the 49th Parallel, Logistec has been buttressing its presence on the East and Gulf coasts where it has been operating for two decades, including Port Manatee, Tampa Bay and Port Everglades.
The company’s U.S. subsidiary, Logistec USA Inc., has notably invested heavily in its bulk handling expertise, especially for mining products and biomass. A state-of-the-art facility at the Port of Brunswick, Georgia can thus ship over one million metric tons of wood pellets annually for European biomass power plants.
A year ago, Logistec signed a 10-year agreement with the Cleveland-Cuyahoga County Port Authority to operate the Cleveland Bulk Terminal.
Then last September, Logistec USA and Coleary Transport Co. formed a new entity, Logistec Everglades, to expand their terminal operations and general cargo handling services at Port Everglades. The partnership facilitates higher volumes of breakbulk in the South Florida market.