#USA #EQT #Atlanta #Americold #Cold Storage

Americold and EQT Join Forces in Cold Storage Venture

In a significant move set to reshape the landscape of cold storage logistics in North America, Americold Realty Trust (NYSE: COLD), a prominent temperature-controlled logistics provider, has announced a strategic joint venture with EQT, a global investment organization. This partnership, valued at $1.3 billion, will focus on the ownership, operational management, and potential creation of high-quality cold storage facilities.

Key Aspects of the Joint Venture

Under the terms of the agreement, Americold will contribute 12 existing cold storage facilities to the joint venture. These facilities are distributed across several states and boast a combined temperature-controlled capacity of approximately 124 million cubic feet, allowing for over 400,000 pallet positions. This makes the joint venture poised to become one of the largest operators in the North American cold storage market upon its establishment.

EQT will hold a 70% stake in the newly formed entity, while Americold will maintain a 30% equity interest and oversee daily operations. This arrangement ensures a continuity of service and utilizes Americold's operational expertise to effectively manage the facilities and serve their clientele. The expected net proceeds of about $1.1 billion from this transaction will primarily be directed toward settling outstanding debts, strengthening Americold's financial foundation.

CEO Insights

Rob Chambers, CEO of Americold, stated, "This joint venture is an important strategic step for us. It not only enhances our balance sheet but also aligns us with EQT, a partner that shares our vision for growth and recognizes the value of our critical assets." He further expressed confidence that this partnership would unlock additional avenues for development and value creation in the future.

Growth Potential and Strategic Focus

The collaboration is not solely about the initial investments but is designed to serve as a long-term growth platform. EQT’s extensive experience in temperature-controlled logistics, supported by their ownership of one of Europe’s largest cold storage providers, is expected to bring significant value to this venture. With their track record of successful infrastructure development, EQT aims to enhance and expand the platform.

In this venture, Americold will leverage its established customer relationships and industry knowledge to identify new opportunities for developing strategically located assets that strengthen the cold supply chain.

EQT’s Perspective

Alex Greenbaum, Partner and Head of EQT Active Core Infrastructure, expressed excitement regarding this partnership, highlighting that the joint venture would comprise high-quality assets catering to significant clients, thereby reinforcing the prospects for sustained growth. With the backing of EQT, Americold plans to further enhance its operations to ensure it can meet and exceed the evolving demands of the cold storage market.

Benjamin Bygott-Webb, another EQT Partner, emphasized the enduring importance of cold chain infrastructure. He reiterated the strong fundamentals highlighting the need for resilience in this sector, particularly as global markets increasingly depend on reliable temperature-controlled logistics.

Future Steps

The transaction is scheduled to conclude in the third quarter of 2026, contingent upon standard closing conditions and requisite regulatory approvals. Financial advisory roles were provided to both Americold and EQT by esteemed firms, Eastdil Secured LLC for Americold, while J.P. Morgan Securities and Morgan Stanley were engaged by EQT.

This landmark venture not only underscores Americold’s agility in navigating market dynamics but also reflects EQT's commitment to investing in essential infrastructure sectors that promise long-term growth and stability. As the need for cold storage grows in tandem with evolving consumer demands and supply chain complexities, this partnership is set to play a pivotal role in enhancing North America's logistics capabilities.