TIP Canada merges

Infrastructure investment manager, I Squared Capital, has announced it will acquire TIP Canada, from Europe-based parent company TIP Group.

Rebranded as Transportation Equipment Network (TEN), the merger will create North America’s second largest full-service trailer lessors with a combined fleet of more than 83,000 trailers with locations across most major logistics hubs.

“For TIP, this will mean a renewed focus on Europe, our home market,” said TIP Group CEO, Bob Fast. “We greatly anticipate prospects for diversification and electrification of our fleet, alongside the expansion of our maintenance network to continue to serve our valued customers and align with our vision to be a leading equipment service provider.”

Tip Canada has 480 employees and more than 1,500 customers, with diversified end sector exposure. It operates 12 workshop locations across Canada and 36 mobile service units providing coast-to-coast maintenance services to its own customers as well as third parties.

The combined group is expected to provide services including integrated leasing, maintenance, advanced technological solutions, consultation services and fleet electrification offerings across numerous industry verticals.

“This transaction is a win for our investors and our global transportation franchise,” said I Squared Chief Investment Officer, Gautam Bhandari. “Trailers play a critical role in complex supply chain networks by meeting customers’ needs for operational and contractual flexibility. These are two leaders in their respective markets and combined they represent a very attractive prospect for infrastructure investors.”

I Squared’s buildout 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. TEN has now more than quadrupled in size.

“While continuing to service the individual customer base, we see a great opportunity to service both Canadian customers that do business in the US, as well as US customers that do business in Canada, providing them with value added solutions to help them run their businesses more efficiently,” said President of TEN, Scott Nelson. “Our expanded scope will allow greater access to equipment and expanded relationships with our supplier partners.”

The transaction is expected to close in the second quarter of 2024.

In other news, FM Logistic has announced the acquisition of land in Guadalajara.

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