ITS CONGLOBAL ACQUISITION & INVESTOR DUE DILIGENCE

The brief. Black Quay advised on the acquisition of ITSC and its subsidiaries ITS, AAW and ConGlobal Industries, the largest provider of freight intermodal handling services in the United States and South America, alongside empty container terminal and automotive terminal management operations. Black Quay were then engaged later to provide technical due diligence supporting new investor involvement in the business.

The challenge. Intermodal rail yards, empty container parks and automotive handling facilities are modelled far less often than marine container terminals, and the available benchmarks are correspondingly thin.

This is not one facility but a network spanning the United States, Mexico and Costa Rica, where capacity had to be assessed site by site and then aggregated into a number the deal team could price. Black Quay's expertise was required to model and assess the various asset types simultaneously.

What we did. On the acquisition, we delivered advanced capacity modelling and costing across rail intermodal facilities, empty container parks and automotive handling terminals throughout the United States, including the New York and New Jersey operations. That included detailed automation strategies for the rail and empty yards, establishing how capacity could be increased on existing footprints without acquiring land.

On the later investor engagement we extended the analysis across more than forty terminals, adding infrastructure and equipment condition and remaining life reviews, infrastructure needs and expansion capacity assessment, and full cost analysis.

The outcome. The acquisition completed successfully, and Black Quay was subsequently retained to support new investor involvement in the same business.

Being brought back by a different party to the same asset is an example of Black Quay's different approach to assisting our clients.

 

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