Mubadala, QIA invests over $600m in American trailer lessor TEN
ABU DHABI, July 15, 2024
I Squared Capital, a leading independent global infrastructure investment manager, today (July 15) announced that it has raised more than $600 million from top regional investors including Abu Dhabi-based Mubadala Investment Company (Mubadala) and Qatar Investment Authority (QIA) for Transportation Equipment Network (TEN).
TEN is North America’s second largest full-service trailer lessors with a combined fleet of over 83,000 trailers with locations across most major logistics hubs.
The company had recently completed a transaction to combine its operations with those of TIP Canada, the North American operations of TIP Group. I Squared acquired TIP Group in August 2018, and has tripled its ebitda in that time via a combination of organic growth and bolt-on acquisitions, said a statement from I Squared Capital.
Trailers play a critical role in complex supply chain networks by meeting customers’ needs for operational and contractual flexibility, it stated.
Rebranded 'TEN' earlier this year, I Squared’s build out of this trailer-leasing platform began in March 2021 with the acquisition of Star Leasing and subsequent acquisitions of Cooling Concepts in May 2022, North East Trailer Services (NETS) in July 2023 and Commercial Trailer Leasing (CTL) in September 2023.
The combined group provides services including integrated leasing, maintenance, advanced technological solutions, consultation services and innovative fleet electrification offerings across numerous industry verticals.
In building the TEN platform, I Squared has improved purchasing power and clarified strategic objectives for the firm. Since the platform build out started, TEN has now more than quadrupled in size thanks to strong organic growth and this series of tuck-in acquisitions, it added.
Gautam Bhandari, Chief Investment Officer and Managing Partner of I Squared, expressed delight at welcoming Mubadala, QIA and other co-investors into TEN.
"All of our co-investors represent like-minded, long-term capital that recognize the potential of the sector and will support the ambitions of TEN. This transaction is a win for TEN, for our investors and for I Squared’s global transportation franchise," he noted.
Giovanni Oddo, Head of Americas – Traditional Infrastructure at Mubadala, said: "Our investment in TEN reflects our commitment to critical assets that drive economic growth and offer long-term value. The trailer leasing market shows great potential with its rapid demand growth and strong market fundamentals."
"We are proud to partner with I Squared Capital and other leading investors to further enable the growth of TEN's capabilities and market reach, creating one of the largest trailer leasing platforms in North America," he added.
Mohammed Al-Sowaidi, Chief Investment Officer for Americas at QIA, said: "This investment is part of our strategy to invest in, and partner with, the leading companies in critical sectors such as supply chain networks, logistics and warehouses globally."-TradeArabia News Service
