Eimskip agrees to acquire Versacold

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.