Logistec acquires the maritime terminals division of Fednav

Logistec, a Montreal-based marine and environmental services company, has reached an agreement to acquire FMT, the Canadian and American marine terminals division of Fednav.

Logistec thus acquires Federal Marine Terminals and Fednav Direct logistics services, united under the name FMT, to strengthen its presence in Canada and the United States. The transaction for an amount of 105 million US will be concluded at the end of March.

“In terms of value, this is the biggest acquisition we’ve ever made,” said Madeleine Paquin, President and CEO of Logistec.

“It’s a pretty exciting day!” We always have energy when we make great acquisitions like that! she started laughing. The team is so happy! »

Logistec, which offers terminal operation and cargo handling services in particular, had a turnover of around 900 million in 2022.

Logistec employs the equivalent of 3,700 full-time people in North America.

An ongoing relationship

The acquisition was desired for a long time.

“We had our eye on it for a long time”, informs the president of Logistec.

“The Pathy family is a family from Montreal with whom we have had a lot of talks in recent years. I know they are very little known, but it’s a big family with a world-class company. »

Founded in Toronto in 1944 by Ernest Pathy, the Federal Commerce & Navigation Company initially focused on shipping before moving to Montreal and expanding into terminals in the 1960s.

This sector “had become very, very competitive on the North American market and we realized that putting our teams together was in everyone’s interest, including the employees,” emphasizes Madeleine Paquin.

The transaction allows Logistec to add 11 terminals to its network, bringing it to 90 terminals in 60 ports in North America.

With seven additional ports, the Montreal-based company is increasing its presence in the Great Lakes and accessing new locations on the US Gulf Coast and the US East Coast.

“And there are places where we are already present, so it strengthens the local team, indicates the president. And it gives us opportunities to position ourselves for new shipments which, we hope, will unlock in new ports as well. »

Surprisingly, this is the case of the river port of Albany, in the middle of New York State, which the acquisition of FMT gives Logistec access for the first time.

In 2021, the port of Albany was selected for the establishment of the first North American offshore wind turbine manufacturing plant, a project with which the Quebec manufacturer Marmen is associated.

On February 27, an article from theAlbany Business Review informed however that the factory project was in danger because of the hole of 300 million that inflation dug in its budget.

Safely

Specializing in international dry bulk shipping, Fednav operates a fleet of approximately 120 bulk carriers. The company, whose head office is located in Montreal, employs nearly 300 people.

For the year ended December 31, 2022, FMT, its marine terminal subsidiary, generated revenue of US$89.8 million (approximately C$116.8 million).

Its Fednav Direct division offers ground transportation, inventory management and 24-hour delivery logistics services in the United States and Canada – a line of business where Fednav had a stronger presence than Logistec.

“We are already receiving these services in Montreal and Virginia,” says Madeleine Paquin. It will help us to increase our own services in this sector. »

For its part, Fednav “will focus on its maritime transport activities and will continue to expand”, indicated in a press release its president and chief executive officer, Paul Pathy, grandson of the founder.

The transaction should go through smoothly. “An acquisition that is easy, comments Madeleine Paquin. Our two companies have similar values ​​and we already know each other very well. So everything should be fine. »