IN A MAJOR deal, forestry-focused logistics and port specialist C3 has been bought from Canada’s Brookfield by London-based InfraRed Capital Partners.
Based in Tauranga, New Zealand and hitherto part of the Brookfield-owned Linx Cargo Care Group, C3 Limited is described as a leading provider to NZ ports and to Australian and NZ forestry sectors, delivering essential infrastructure services to blue-chip customers across national import and export supply chains.
It operates 15 strategic port and inland sites throughout the two countries, supporting port-side container logistics as well as large exporters across diversified sectors. In Australia C3 has operations in WA, Victoria, Tasmania and NSW.
The acquisition was announced overnight in London and this morning in Sydney and will see InfraRed, characterised as a leading international infrastructure asset manager, take ownership of C3 through one of its value-add funds.
Specialist materials handling in timber and forestry is C3’s largest sector focus and a core area of operational expertise. The company has an extensive presence at key ANZ seaports and mill-integrated sites, operating specialist fibre-processing and export infrastructure.
It provides a full terminal-to-vessel solution, including log marshalling, debarking and chipping, and loading of vessels. C3 handles about half of NZ’s total log exports, which represents c.NZ$3.4 billion of annual export revenue. C3 offers a stable base from which to grow, with key customer tenure exceeding 20 years, InfraRed says.
C3 also operates critical container logistics operations and port equipment in key locations across NZ, providing integrated logistics services to exporters across multiple sectors including dairy, agriculture and energy. It handles c.50% of containers at the country’s busiest port, Tauranga.
“With exporters requiring greater efficiencies in their routes to market, C3 is well-positioned for sustained growth from adjacent opportunities. Continued investment is planned to build on its well-established platform, developing its port presence and logistics capabilities to expand its customer offering across the logistics value chain,” the UK investor says.
“C3 reflects InfraRed's value-add approach: a platform with strong fundamental infrastructure characteristics, offering attractive opportunities to apply growth capital and operational expertise to build and de-risk the business.
“What makes C3 particularly compelling is the opportunity to enhance its established position in the container handling and forestry supply chain by broadening the services it offers customers," head of European and APAC Investments, value-add at InfraRed, Sven Stubican said.
Over decades, the business has developed a strategic port presence, deep customer relationships and specialist operational capabilities, providing a strong platform for expansion. C3 benefits from a resilient base of core earnings, and we will seek to build on this via attractive adjacent opportunities.
“InfraRed has been active across Australia and New Zealand for more than 15 years and has made and realised multiple value-add investments in the region. In acquiring C3, we are backing an experienced management team with a strong track record and will leverage our long-standing local experience to support the business in delivering its next phase of growth."
C3 chief executive Gavin Hudson said they played "an important role in connecting New Zealand and Australian exporters to international markets, built on decades of operational know-how and strategic port and inland locations".
"We're proud of what the team has achieved and excited to be working with InfraRed to broaden our services across the export value chain, as we continue to seek new opportunities to support our customers," Mr Hudson said.