CDPQ-backed Student Transportation buys Pacific Western Transportation

Both CDPQ and minority shareholder Ullico have reinvested to support STA in its growth by acquisition.

  • Pacific Western Transportation is the largest privately-owned transportation company in Canada
  • Tom Jezersek, president and chief operating officer for Pacific Western, will continue to lead the business following the merger
  • The merger aligns with CDPQ’s commitment to achieving a carbon neutral portfolio by 2050

Caisse de dépôt et placement du Québec-backed Student Transportation of America/ Student Transportation of Canada (STA/STC) has acquired Pacific Western Transportation (PWT). STA/STC is North America’s third largest provider of school bus transportation services and PWT is the largest privately-owned transportation company in Canada. The deal will add 4,100 vehicles to the STA/STC existing fleet, 950 of which being alternative fuel and electric buses.

Majority shareholder CDPQ and minority shareholder The Union Labor Life Insurance Company (Ullico) have both reinvested in the company to support its growth via an acquisition strategy. STA/STC was acquired by CDPQ and Ullico for $1.1 billion in 2018.

CDPQ invests to generate sustainable returns over the long-term on behalf of Quebec public pension and insurance plans. It implemented its first climate strategy in 2017.  In 2021, CDPQ announced several commitments including but not limited to:

Holding $54 billion in green assets by 2025, achieving a 60% reduction in the carbon intensity of the total portfolio by 2030 and completing its exit from oil production by the end of 2022.

“The acquisition of Pacific Western will combine the expertise of two of Canada’s leading players and provide an opportunity to further accelerate the electrification of their fleets, for the benefit of school children and local communities served by Pacific Western and STA/STC across the country,” said Emmanuel Jaclot, Executive Vice-President and Head of Infrastructure at CDPQ.

Ullico is the only labor-owned insurance and investment company in the United States. It allocates across asset classes.