Sygnus acquires stake in logistics firm
Published:Wednesday | December 21, 2022 | 1:14 AM
Sygnus Deneb Investments Limited, SDI, the private equity arm of Sygnus Capital, has acquired a minority stake in regional logistics firm CS&T from Facey Group.
Deneb now owns a 42.2 per cent of CS&T, with Facey Group remaining as the majority shareholder. The deal closed on December 8, but was just disclosed on Tuesday. Sygnus Group President & CEO Berisford Grey declined to comment on the purchase price.
The transaction involved the issuance of convertible preference shares to Deneb.
“The convertible shares will have equity rights and will eventually be converted to common [stock],” Grey said.
The investment will allow CS&T to continue its expansion and broaden its service offerings to the Caribbean and Latin America. Essentially, CS&T plans to capitalise on the need for logistics services to facilitate e-commerce activity in the region.
“Sygnus and the Facey Group have a long-standing relationship and partnership built over the last five years,” said Paul ‘PB’ Scott, chairman of CS&T, adding that the company is looking to accelerate its growth over the next few years, in a statement regarding the deal with Sygnus.
Sygnus Deneb engages in equity and mezzanine financing deals that are mainly targeted at medium-sized companies with revenue ranging from US$5 million to US$50 million. The fund typically invests in private companies through the purchase of shares, convertible preference shares, subordinated debt, and other hybrid securities with equity components.
“This investment in CS&T is aligned with SDI’s strategy of providing growth capital in key growth industries, as we continue to expand our regional footprint,” said Ike Johnson, chief operating officer and head of private equity at Sygnus Group.
CS&T Group is an integrated business to business or B2B logistics services provider. Siblings PB Scott and Melanie Subratie are listed as directors.
Deneb’s investment in CS&T is its second in the past three months, following its acquisition of a stake in Chukka Caribbean Holdings, the operator of the Chukka Adventure tours.
“Sygnus has a robust pipeline of private equity opportunities valued at almost US$100 million, that includes industries such as maritime, retail, energy, manufacturing and distribution,” said Stephen Wright, assistant vice president for private equity and M&A at Sygnus Capital.