Americold Realty Trust buying cold storage provider Cloverleaf for $1.24B
Atlanta-based Americold Realty Trust (NYSE: COLD) said Tuesday morning it plans to buy privately-held Cloverleaf Cold Storage from the company's management and an investor group led by private equity funds managed by Blackstone (NYSE: BX) for $1.24 billion.
Founded in 1952 and based in Sioux City, Iowa, Cloverleaf is the fifth largest cold storage provider in the United States by refrigerated cubic feet and serves over 360 customers. Americold will acquire 22 facilities totaling 132 million refrigerated cubic feet. Cloverleaf’s properties are in nine states in the central and southeastern United States, and are complementary to Americold’s existing geographic reach, Americold said.
The deal is expected to close in the second quarter of 2019.
Americold also announced it plans to invest $126 million to $136 million in a planned expansion and redevelopment at its existing Atlanta major market campus, consisting of its Tradewater, Gateway, Westgate, Southgate, and Skygate facilities.
“Given the supply-demand characteristics for temperature-controlled infrastructure in Atlanta, we are extremely pleased to announce our plans to expand our operations in this key market, which we believe will allow us to support new and existing customer growth,” said Fred Boehler, president and CEO of Americold Realty Trust, in a statement. “Furthermore, the expansion of our Atlanta major market campus, and our previously announced development at the Port of Savannah, together will grow our total capacity in the state by over 50% by 2021." Read more