The Government Singapore Investment Corporation (GIC), Ontario Teachers Pension Plan and PSP Investments are investing $700m in freight specialist XPO Logistics.
The US third-party logistics provider said the agreement to sell new shares would give the consortium a 22% stake. Jacobs Private Equity will remain the company’s largest shareholder.
Daniel Garant, senior vice-president, public markets for PSP Investments, said the Canadian institution had made the investment for its value opportunities portfolio’, which has a mandate to make strategic investments in publicly-listed companies.
Garant said PSP was focusing on companies that it believed had the capability to generate “above-average risk-adjusted returns over time”.
Access to long-term returns was the motivation for Ontario Teachers, according to Michael Wissell, senior vice-president, public equities. He said XPO’s plans were aligned with its long-term strategy.
Lim Kee Chong, deputy group CIO and director of integrated strategies for GIC, said the sovereign wealth fund had a “favourable view” on the US economy and the country’s logistics market.
Bradley Jacobs, chairman and chief executive officer of XPO Logistics, said additional equity would allow it to capitalise on a “livelier than expected” acquisition pipeline. The firm, he said, had increased its financial target for 2017 and was now targeting revenues of $9bn.