Eimskip seeks bigger share
of Canadian cold storage
May 30, 2007 10:15 AM
Eimskip Holdings Inc has agreed to acquire Canadian-based Versacold Income Fund for approximately $515 million. The transaction comes less than one year after the Icelandic shipping and logistics firm purchased Toronto-based Atlas Cold Storage Income Trust.
Should the transaction be completed, Eimskip would control 55 percent of Canadian refrigerated warehouse capacity, as well as a smaller share of United States capacity.
George Armoyan, a Versacold trustee and chief executive officer of Clarke Inc, a holding company with a 19.1 percent share in Versacold, was instrumental in Versacold's decision to conduct a strategic review recently. He said this review resulted in a fair offer from Eimskip and good value for shareholders of Versacold.
As part of the transaction, Eimskip can match any competing offer and receives a $20-million break fee should Versacold accept a better offer. The deal is subject to at least two-thirds of Versacold shares being deposited toward the offer.
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