Success Stories

Divestiture of a Non-Core Operation
Management Buyout
Public Market Exit

Based in Toronto, Livingston International is the largest customs brokerage and trade services company in Canada and is among the largest in North America. The Company primarily serves businesses that transport goods between Canada and the U.S.

CAI acquired Livingston in 1997 from Livingston Group Inc., which had decided to sell the Company in order to focus on its core operations. During the acquisition process, CAI held extensive talks with management that resulted in a new strategic direction for Livingston. CAI and management articulated the Company's goals of becoming the trade services provider of choice across the Canada-U.S. border.

Following the acquisition of Livingston, CAI worked closely with the management team to further develop and implement this strategy. Livingston restructured its operations, improved the quality of its service, broadened its service offerings and rejuvenated its marketing efforts. Livingston also implemented incentive compensation programs in order to align the interests of management and employees with those of the shareholders.

Consistent with CAI's philosophy of supporting investment in operational improvements to generate improved financial returns, Livingston made significant investments in its information systems, strengthening an important competitive advantage and allowing the Company to serve new and existing clients more effectively. In extending its leadership position in information technology, Livingston significantly improved its customers' abilities to qualify for expedited electronic clearance of their cross border shipments by satisfying the stringent compliance and record keeping requirements of North American customs agencies.

The North American customs brokerage industry was also highly fragmented. Small and mid-sized brokers were faced with the challenge of meeting demanding compliance requirements and making large capital investments in technology to remain competitive. As part of Livingston's strategic plan, CAI and Livingston management implemented a growth through acquisition strategy that resulted in Livingston acquiring Blaiklock Holdings Ltd., another Canadian customs brokerage company. Through careful integration of the acquisition, Livingston was able to realize substantial operational synergies and increase profitability.

In February 2002, CAI sold its entire interest in Livingston to the public via an income trust IPO. During the four years of CAI sponsorship, in close collaboration with Livingston's strong management team, CAI was able to transform Livingston into a dynamic growth company and take advantage of scale advantages that resulted in an enhanced ability to service its customers' needs and significantly increased profitability. In the process, Livingston became the leading North American customs brokerage and trade services company focusing on the world's largest trading lane and Livingston's management, customers and employees were all able to share in the financial success of CAI's investment.

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