Americold closes $1.3B cold storage joint venture with EQT
Key takeaways
- Americold retains 30% of a 12-facility cold storage joint venture with EQT.
- The venture represents more than $1.3 billion in gross asset value.
- Americold received about $1.1 billion in net proceeds to reduce debt and leverage.
Americold Realty Trust recently closed its previously announced North American cold storage joint venture with EQT’s Active Core Infrastructure fund, creating a platform with more than $1.3 billion in gross asset value. The company will retain a 30% ownership interest while EQT holds 70%.
The joint venture includes 12 temperature-controlled warehouse facilities across the U.S. Americold will manage the platform and continue providing operational services for customers.
Americold received approximately $1.1 billion in net cash proceeds from the transaction. The company plans to use the proceeds to repay outstanding debt, reduce leverage, strengthen its balance sheet, and increase financial flexibility for long-term growth.
Americold and EQT also intend to use the joint venture as a long-term platform for ownership, development, and strategic growth opportunities in North American cold storage. The partnership will combine Americold’s operating capabilities and customer relationships with EQT’s infrastructure investment expertise and capital resources.
“This transaction represents an important milestone for Americold and demonstrates strong execution against one of our five key priorities,” said Rob Chambers, CEO of Americold. “In addition to generating substantial proceeds that further strengthen our balance sheet and reduce leverage, we have established a long-term capital and development partnership with EQT. Together, we have created a platform with the scale, expertise, and financial capacity to pursue future opportunities as the cold storage industry continues to evolve. We are excited about what this partnership enables over the long term and the value it can create for our customers and shareholders.”
What this means for the trucking industry
The joint venture gives Americold additional financial flexibility while maintaining its role in operating the 12-facility portfolio. It also positions Americold and EQT to pursue additional cold storage opportunities, potentially expanding the infrastructure available to support temperature-controlled freight as the platform grows.
