Morgan Stanley did not report what its proceeds would be for its stake in the firm. The two shares equal 100%, giving Yucaipa full ownership. The transaction is expected to close imminently.
Vornado did report a $110 million gain on the sale of the company, which had been valued at $1.52 billion, before debt and other obligations. Citi and Morgan Stanley advised Vornado and Morgan Stanely Real Estate on the deal. Morgan Stanley declined to comment to GlobeSt.com about the transaction. AmeriCold referred GlobeSt.com to Vornado for comment, which did not return calls in time for deadline.
An Atlanta provider of temperature-controlled food distribution services, AmeriCold is the largest third party company in this space. Transactions included a 2006 agreement to acquire four refrigerated warehouses from ConAgra Foods Inc., and to lease a fifth facility for $190 million: $152 million in cash to ConAgra, and $38 million for the lease of the fifth facility.
Yucaipa Cos. has had its hand in AmeriCold for several years, maintaining a 20% interest in the company. Outside of its investment in AmeriCold, the firm, founded by billionaire Ron Burkle, has made related investments in the distribution/logistics, manufacturing and food industries. These have included Food4Less, Smitty's Supermarkets, Dominick's, Ralph's Grocery Co., Smith Food and Drug, Fred Meyer and Golden State Food and Alliance Entertainment.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
