Reddy Ice announced it has reached an agreement to acquire Arctic Glacier from The Carlyle Group, expanding Reddy Ice’s footprint across North America and adding a sizable Canadian operating base. Financial terms were not disclosed.
Reddy Ice, a portfolio company of SCI Capital Partners LP, described the transaction as a combination of two geographically complementary packaged ice platforms with opportunities to drive operational efficiencies across the United States, Mexico and Canada. Arctic Glacier, which traces its operating history back more than a century, supplies packaged ice across retail and commercial end markets and maintains an extensive manufacturing and distribution network in the U.S. and Canada.
The parties said the acquisition remains subject to customary closing conditions, including regulatory approvals. As part of the review by the U.S. Department of Justice Antitrust Division, Reddy Ice said it will divest four facilities and associated customer contracts in Mukilteo and Lakewood, Coeur d’Alene and Brawley, along with certain customer contracts in Oregon and in the New York City and Boston metropolitan areas.
Support: Advisors on the deal include Latham & Watkins as legal counsel and BMO Capital Markets as financial advisor to Reddy Ice. Arctic Glacier’s advisors include Debevoise & Plimpton and Rule Garza Howley as legal counsel and Deutsche Bank as financial advisor.
KEY QUOTES
“We are proud to welcome Arctic Glacier to the Reddy Ice family,” “We believe the combination of these two outstanding, complimentary companies will allow us to create increased operational efficiency across a diverse footprint in the US, Mexico and now Canada. Our vision is to transform the world’s health, welfare, and quality of life by providing superior and exceptional products and services to our customers. We believe this will allow us to deliver on this commitment to our customers and the communities in which we operate and live.”
Lonny Warner, Chief Executive Officer of Reddy Ice and a member of the Reddy Ice Board of Directors
“This acquisition highlights the value and strength of our business, which has always been passionately focused on exceeding our customers’ expectations,” “We take pride in our advanced innovative ice solutions, and our strong commitment to top-tier advancements in technology, strong trusted partnerships with our customers, our operational prowess, and excellence in food safety. We have built a thriving, people-first culture that has earned the trust of our exceptional associates and customers. This transaction is a result of the outstanding work we’ve done and we look forward to continuing to deliver for our customers and employees in partnership with Reddy.”
Peter Laport, Chief Executive Officer at Arctic Glacier
“This transaction was a clear and compelling opportunity for strategic growth and value for our shareholders. Both companies share a commitment to the highest quality products and services, and the combined financial strength and operational proficiency will allow us to exceed customer expectations over the long term.”
Shawn Malleck, Chairman of the Board and Partner at SCI
“We are proud of all that Arctic Glacier has accomplished and grateful to the management team and employees for their dedication. We wish the combined company continued success as it enters this exciting next chapter, bringing together two robust and geographically complementary platforms to better serve customers across North America.”
Matthew Coles, Managing Director at Carlyle
