CS&T offers services to corporate clients aiming to enable them to outsource their logistics operations. As per information provided in the press release, the equity investment deal was closed on December 8, 2022.
Details on what the investment entails
Made through the issuance of Convertible Preference Shares, SDI’s investment is set to help CS&T with the continuation of its strategic expansion, allowing the company to have its service offering broadened to the Caribbean and Latin America. Furthermore, Sygnus Group representatives have advised that the investment aligns with their strategy in providing growth capital in key growth industries, as they are looking to further expand their regional footprint.
CS&T and its logistics services’ suite has been situating itself as a provider of fully integrated logistics solutions that capitalises on current tailwinds of the likes of expected ecommerce growth and a constantly increasing need for logistics services that facilitate ecommerce. The company is set to take advantage of the fragmented freight forwarding and consolidation market, as well as the broadening of the global logistics outsourcing market. Furthermore, the group will also provide commercial warehousing space in Jamaica.
A regional Private Equity (PE) investment company managed by Sygnus, SDI is dedicated to providing equity and mezzanine capital regionally in key growth industries, with the enterprise targeting investments in medium-sized companies that have a revenue that ranges from USD 5 million to USD 50 million. Typically, the fund invests in private companies though means of Equity, Preference Shares, Subordinated Debt, and other hybrid securities with equity components.
Private Equity and M&A representatives advised that the CS&T investment enables exposure to the expanding logistics sector, which is thought to be one of the fastest growing sectors within the region. CS&T’s regional strategy is believed to provide an opportunity to diversify revenue streams, whereas the Facey Group team is thought to bring a strong track record for the management and growth of regional businesses.
SDI recent developments and Sygnus, CS&T product offering
Throughout 2022, SDI has been strategically growing its private equity portfolio, the CS&T stake acquisition marking the company’s second investment within the last 3 months, following a stake acquisition in Chukka Caribbean Holdings, as per information provided in the press release.
A company spokesperson has advised that Sygnus’s private equity opportunities pipeline is valued at approximately USD 100 million, and includes industries of the likes of maritime, retail, energy, manufacturing, and distribution.
Sygnus is an alternative investment management company in the Caribbean and Latin America, spanning private credit, real estate, and private equity. The company manages Sygnus Credit Investments Limited (SCI), a private credit investment company, which offers debt financing to middle market businesses across the Caribbean.
CS&T Group is an integrated B2B logistics services provider which gives small to corporate clients the opportunity to have their logistics operations outsourced. The company offers services of the likes of consolidation, freight-forwarding, customs clearance, bonded warehousing, warehousing management, and other value-added solutions to larger commercial clients.