Reddy Ice Completes Acquisition of Arctic Glacier, Boosting Its Market Position

Reddy Ice Completes Acquisition of Arctic Glacier

In a significant move to strengthen its position within the ice manufacturing industry, Reddy Ice, LLC has recently announced the successful completion of its acquisition of Arctic Glacier, LLC. This acquisition marks a notable milestone in Reddy Ice's strategy to consolidate its foothold in North America, especially in the premium ice market.

Founded as a competitive entity in the icy realm, Arctic Glacier has established itself as a dependable provider of high-quality ice solutions across North America for over 140 years. This long-standing legacy includes the distribution of over 2.5 billion pounds of premium ice per year, catering to a diverse clientele that spans supermarkets and convenience stores to various commercial establishments. Its extensive operational network across the United States and Canada, consisting of 77 manufacturing facilities, plays a pivotal role in servicing more than 70,000 customers, ensuring availability and quality in the market.

Reddy Ice, which is backed by SCI Capital Partners LP, is renowned for its expansive ice production capabilities in the United States and Mexico. With a network comprising over 115 manufacturing and distribution centers, Reddy Ice offers a variety of products, including packaged ice, Craft premium ice, and hydration solutions, fundamentally focusing on meeting customer needs through innovative distribution methods and exceptional service.

Lonny Warner, CEO of Reddy Ice, expressed his enthusiasm about the acquisition, noting the potential that lies in the unification of both companies. He highlighted the shared commitment to delivering high-quality products and services, emphasizing that this transition opens new horizons for growth and value creation for all stakeholders involved—customers, team members, and the industry at large.

He stated, "We are pleased to welcome Arctic Glacier into the Reddy Ice and SCI family and excited about the value we can unlock as a combined organization. This transaction is a truly transformational opportunity that advances our mission to enhance life by delivering high-quality, innovative products and services in the communities we serve."

However, this acquisition is not without its complexities. Due to the review by the Department of Justice's Antitrust Division, Reddy Ice will be divesting four of its facilities located in Mukilteo and Lakewood in Washington, Coeur d'Alene in Idaho, and Brawley in California. Additionally, certain customer contracts in Oregon and metropolitan areas like New York and Boston will also be affected. This strategic divestment aims to ensure compliance with regulatory standards while allowing smooth integration of Arctic Glacier into the Reddy Ice framework.

SCI’s Managing Partner, Adam Cohn, praised the execution and leadership surrounding this transaction. This acquisition signifies Reddy Ice's 22nd under SCI's guidance since its acquisition in 2019, underscoring a consistent pattern of growth and operational enhancement. Cohn noted, "This transaction strengthens our platform as we enter the next phase of growth."

The mood around Reddy Ice is optimistic, as both organizations are keen on realizing the various synergies available. As Peter Laport, CEO of Arctic Glacier, mentioned, the collaboration opens a new chapter of opportunity. "I am immensely proud of what our associates have achieved in recent years, and this acquisition is a testament to the extraordinary foundation we have built together."

Matthew Coles, Managing Director at Carlyle, which facilitated the deal, expressed gratitude for Arctic Glacier's management and employees. He stated, "We are proud of all that Arctic Glacier has accomplished and wish the combined company continued success as it enters this exciting next chapter."

With Reddy Ice's commitment to innovative solutions and expansion within the high-quality ice production segment, the future appears bright as they embark on this new journey together with Arctic Glacier. The integration process is anticipated to promote enhanced operational scale and capitalize on promising growth opportunities across North America moving forward.

For more information about Reddy Ice and its product offerings, you can visit Reddy Ice. Likewise, additional insights about Arctic Glacier can be found at Arctic Glacier.