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Americold to strengthen Mid-Atlantic presence with Nova Cold
Posted on Thursday, 21 November 2019 15:09
Americold Realty Trust has signed an agreement to buy cold storage facilities provider Nova Cold Logistics, formerly known as Brookfield Cold Storage, for CAD 337.00 million (USD 253.44 million) in cash.
Completion is slated for the first quarter of 2020, subject to customary closing conditions.
Americold will finance the deal through a combination of cash on its balance sheet, its corporate revolver and proceeds from the group’s equity forward in the second quarter of 2019.
Nova Cold provides cold storage facilities and refrigerated warehouse services.
The target has three sites spanning 23.50 million cubic feet with 81,000 pallet positions in Toronto, Calgary and Halifax.
Nova Cold’s warehousing facilities comprise 16.00 million feet of storage capacity, which features voice inventory management technology, as well as temperature-controlled docking systems.
Alongside its core activities, the group also provides blast freezing, stamping and import and export services.
Fred Boehler, chief executive of Americold, said the transaction would allow it to expand its presence in Canada and the Mid-Atlantic region of the US.
He added the deal will enhance the company’s position as a leading global owner of temperature-controlled infrastructure, strengthen its relationships with existing clients and provide access to new regional and local customers.
Americold is no stranger to the acquisition trail; in May 2019, it purchased US-based temperature-controlled warehouse operator Chiller Holdco for USD 1.24 billion.
In the nine months to 30th September 2019, the buyer recorded revenue of USD 1.30 billion, up 8.5 per cent from USD 1.19 billion in the corresponding period of 2018.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 38 deals targeting refrigerated warehousing and storage operators worldwide since the beginning of 2019.
Interestingly, Americold’s acquisition of Chiller Holdco was the most valuable of these in the year to date.
© Zephus Ltd