Americold Realty Trust announced it has entered into a definitive agreement to acquire Nova Cold Logistics, temperature-controlled operator based in Canada, for CAD $337 million from Brookfield Business Partners L.P. together with its institutional partners.
The closing of the acquisition is subject to customary closing conditions and is expected to occur in the first quarter of 2020.
The Nova Cold portfolio consists of three locations totaling 23.5 million cubic feet with approximately 81,000 pallet positions, and additional acreage for future expansions, located in the gateway cities of Toronto, Calgary, and Halifax.
Separately, the company has completed the acquisition of two cold storage facilities owned by MHW Group Inc. (“MHW”), one in Maryland and one in Pennsylvania, and exercised an option to purchase the underlying land, for $54 million. This transaction is expected to be executed at a CAD year one NOI yield of approximately 6.1% and is intended to be funded with a combination of cash on the balance sheet.
The MHW portfolio consists of two facilities totaling 19.0 million cubic feet and approximately 86,000 pallet positions located in Chambersburg, PA and Perryville, MD. This transaction is being executed at a year one NOI yield of approximately 7.8% and is being funded with cash on the balance sheet.
“These accretive acquisitions enhance the Company’s position as a leading global owner and operator of temperature-controlled infrastructure while expanding relationships with existing high quality customers and providing access to new regional and local customers,” said Fred Boehler, President and Chief Executive Officer of Americold.
“Both of these acquisitions are immediately accretive on a leverage neutral basis. Additional opportunities to enhance returns over the next two to three years by implementing our best-in-class commercial business practices and the Americold Operating System make them even more attractive,” he added.
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