Wall-based Student Transportation Inc. announced Tuesday it is being acquired by a group of investors led by Caisse de dépôt et placement du Québec and Ullico Inc.
Under terms of the deal, shareholders of STI will get $7.50 per share.
“We are pleased to present an opportunity to the securityholders of the company to receive a very attractive valuation and significant premium to the trading price of the company’s shares,” said George Rossi, chairman of the special committee of STI. “After careful deliberation, the special committee and company’s board of directors have unanimously concluded that the transaction is in the best interests of the company and is fair to the company’s shareholders.”
The transaction is expected to close by the end of the second quarter of 2018.
“This transaction presents a compelling opportunity for our investors to monetize their investment at an attractive price. CDPQ has been invested in our company for 16 years and for most of that time as our largest shareholder. We will continue to be the North American leader in student transportation and our unwavering commitment to our employees, customers, safety, service and innovation will remain unchanged,” said Denis J. Gallagher, chairman and CEO of STI.
“Over the years, CDPQ has been one of Student Transportation’s largest shareholders. This transaction represents a significant new step in our relationship with the company, and we look forward to working with the management team for years to come,” said Macky Tall, executive vice president, infrastructure, CDPQ, and CEO and president, CDPQ Infra.
Scotiabank is acting as financial advisor to the special committee, and Goodmans LLP is acting as legal counsel to the special committee and STI. BMO Capital Markets is acting as financial advisor and Torys LLP is acting as legal counsel to the purchaser.
“Ullico is pleased to partner with CDPQ to invest in this transaction and has been impressed with the dedication and accomplishments of STI’s management and workforce,” said Rohit Syal, head of acquisitions for Ullico’s Infrastructure Business.
