The acquisition is expected to close in the first quarter of 2020, Americold said.
The company also recently completed a separate purchase of MHW Group’s cold storage facilities, and the underlying land, in Maryland and Pennsylvania for $54 million.
“We are excited to expand our infrastructure and presence in Canada and Mid-Atlantic US with these highly strategic locations and modern facilities that offer compelling growth opportunities,” said Fred Boehler, president and chief executive officer at Americold. “We look forward to welcoming all the new Associates to our team.
“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.”
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. This acquisition expands Americold’s position in Canada, a growing market with fragmented ownership of cold storage facilities, where the company already has a presence through its third-party management business. Americold’s current customer base overlaps with Nova Cold’s.
The MHW portfolio consists of two facilities totaling 19 million cubic feet and approximately 86,000 pallet positions located in Chambersburg PA and Perryville MD. Both facilities are rail-served sites and strengthen Americold’s presence in the Mid-Atlantic region.
“Both of these acquisitions are immediately accretive on a leverage neutral basis,” Boehler said. “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.”