The private equity arm of the Canadian pension fund OMERS is considering selling Kenan Advantage Group in a deal that could bring in $2.5 billion or more for the tank truck carrier, Bloomberg reported Tuesday, citing anonymous sources.
OMERS Private Equity, which acquired Kenan in 2015, declined to comment on the report. But Kenan could attract significant interest from private equity firms and large transportation and logistics companies.
Ohio-based Kenan (KAG) is North America’s largest tank truck carrier and logistics provider, serving the U.S., Canada and Mexico. It has a fleet of over 7,000 trucks.
KAG has been active on the acquisition front. The trucking and logistics company’s Canadian subsidiary, Westcan Bulk, has made two acquisitions in the past month, Les Distributions Carl Beaulac and Paul’s Hauling.
OMERS Private Equity has over $80 billion under management as part of the Ontario Municipal Employees Retirement System. On Friday, it announced that it will sell its stake in the Detroit River Rail Tunnel for $312 million to Canadian Pacific.