A consortium comprising Canada Pension Plan Investment Board (“CPPIB”), OMERS and Ontario Teachers’ Pension Plan (“Ontario Teachers'”), together “the Consortium”, has announced that they have signed an agreement to acquire Skyway Concession Company LLC (“SCC”) for a total consideration of US$2.8 billion. SCC manages, operates and maintains the Chicago Skyway toll road (“Skyway”) under a concession agreement, which runs until 2104.
CPPIB, OMERS and Ontario Teachers’ will each own a 33.33% interest in SCC and contribute an equity investment of approximately US$512 million each. The transaction is subject to regulatory approvals and customary closing conditions.
Skyway is a 7.8 mile (12.5 kilometre) toll road that forms a critical link between downtown Chicago and its south-eastern suburbs. As an essential part of the Chicago road network, it delivers reliability and time savings for its users in one of the busiest corridors in the U.S.
“Skyway represents a rare opportunity for us to invest in a mature and significant toll road of this size in the U.S.,” said Cressida Hogg, Managing Director and Head of Infrastructure, CPPIB. “This investment fits well with CPPIB’s strategy to invest in core infrastructure assets with long-term, stable cash flows in key global markets. We are pleased to partner with OMERS and Ontario Teachers’ in this investment as like-minded, long-term investors.”
“We’re pleased to announce OMERS investment in Skyway, which aligns with our strategy to acquire assets that will generate stable, consistent returns, matching our long-term obligations to the pension plan’s members,” said Ralph Berg, Executive Vice President & Global Head of Infrastructure, OMERS Private Markets. “Our investment in Skyway also fits with our goal of growing our assets under management in the North American infrastructure space. We welcome the opportunity to partner with CPPIB and Ontario Teachers’ as co-investors in this acquisition.”
“Skyway is a critical asset for the Chicago region that will provide inflation-protected returns to match our liabilities and further diversify our infrastructure portfolio,” said Andrew Claerhout, Senior Vice-President, Infrastructure at Ontario Teachers’. “The long-dated nature of the concession closely reflects the investment horizon of Ontario Teachers’ and our partners at CPPIB and OMERS.”