Singaporean sovereign wealth fund GIC has joined Canadian pension fund OMERS and London-based infrastructure investment manager Wren House in acquiring US chassis supplier Direct ChassisLink Inc (DCLI) from Apollo Global Management and EQT.
The transaction is expected to close in the second half of 2022, according to an announcement.
Financial terms were not disclosed. A Bloomberg report last year said EQT and Apollo were looking to sell the US company for around $4.5 billion.
Earlier in 2019, EQT sold a majority stake in DCLI to Apollo while retaining a 20% stake. The deal was then worth about $2.5 billion, according to Reuters.
DCLI is one of the largest chassis lessors in the United States, according to investors, enabling road transport of containerized freight to and from ports, yards and customer locations. The company has more than 151,000 marine chassis and 100,000 domestic chassis in its fleet.
DCLI will become OMERS Infrastructure’s eighth global transportation and mobility investment, said Gisele Everett, Senior Managing Director and Head of Americas, OMERS Infrastructure.
OMERS Infrastructure, the infrastructure investment advisory and management arm of OMERS, currently has approximately C$32 billion ($24.9 billion) in assets under management and more than 30 investments, primarily in North America. North, Europe and Asia-Pacific.
“In the United States, intermodal transportation is on the rise as companies seek to reduce transportation costs and reduce their carbon footprint. […] We strongly believe that DCLI is well positioned to capitalize on this growing trend,” said Boon Chin Hau, Managing Director and Head of Infrastructure for the Americas at GIC.
GIC’s infrastructure investments include both direct investments and funds. According to its website, it invests in low to moderate risk mature assets in developed markets, complemented by higher growth potential investments in emerging markets.
Some of GIC’s infrastructure deals include IRB Infrastructure Developers and IndiGrid in India, European telecommunications network infrastructure provider CETIN Group and US wastewater management company WaterBridge Resources.