Arjun Infrastructure Partners (AIP) and Fengate Asset Management (Fengate) are pleased to announce that the firms have acquired ONroute Service Centres (ONroute).
ONroute operates a chain of 23 service plazas and rest areas with prime locations along major highways in Ontario, Canada. Operational for over seven years, ONroute currently serves more than 40 million customers per year and operates under a 50-year concession agreement with the Province of Ontario. ONroute has the exclusive right to operate commercial service centres with direct access to highways 400 and 401 and has a first right of opportunity to develop commercial service centres with direct access to all non‐tolled 400 series highways in Ontario.
“ONroute offers a unique opportunity for our investors to capitalize on AIP’s experience of the Motorway Service Areas (MSA) sector, developed through our management of Welcome Break, the second largest MSA operator in the United Kingdom,” commented Surinder Toor, Managing Partner, AIP.
“AIP intends to continue building ONroute’s strong offering for the benefit of the Province’s population and AIP is pleased to be joining forces with Fengate, who have extensive experience of managing critical social infrastructure in North America and particularly in Ontario,” said Charles Hazelwood, Partner, AIP.
“ONroute is a unique, high-quality transportation infrastructure investment in Ontario that will deliver long-term, stable cash flows to our investors. We are very impressed with the quality of ONroute’s people, infrastructure, locations and operations, and this acquisition is an excellent fit with our investment strategy,” said Andrew Cogan, Managing Director, Infrastructure Investments, Fengate. “Furthermore, we are pleased to partner with the talented and experienced AIP team.”
The sellers are KD Infrastructure L.P. and a Canadian subsidiary of HMSHost Corporation, along with certain of their affiliates. Financial close for the transaction was achieved May 26, 2019, with consent from the Province of Ontario.
Evercore Inc. acted as financial advisor and Blake, Cassels & Graydon LLP acted as Canadian legal advisor to AIP and Fengate, with White & Case LLP providing supplemental legal advice to AIP.