Miami-based H.I.G. Capital has acquired premium packaged ice maker Arctic Glacier of Winnipeg for $434.5 million
Winnipeg – Canada’s leading manufacturer and distributor of packaged ice, Arctic Glacier Inc., has been acquired by a Miami-based private equity fund.
An affiliate of H.I.G. Capital, the U.S. company, is paying $434.5 million for Arctic Glacier, reports the WinnipegFreePress.com. The deal is expected to close on or before July 31 and is subject to some additional closing conditions.
Arctic Glacier has been operating under court-protection from creditors for nearly four months and recently received approval to settle a class-action suit brought on behalf of its investors, who would be entitled to a share of $13.75 million in payouts, reports the GlobeandMail.com.
The WinnipegFreePress.com reports that the head office will remain in Winnipeg and that the company expects all its employees to be offered jobs. The company employs more than 1,100 year-round and more than 2,400 during the peak summer period.
The company produces 11,000 tons of ice each day.
H.I.G. will assume responsibility for all trade payables, licences and some contractual obligations. After paying all known creditors, it said there may be enough money to pay a distribution to Arctic Glacier unitholders.
Arctic Glacier Income Fund operates 39 production plants and 47 distribution facilities across Canada and the northeast, central and western U.S., servicing more than 75,000 retail locations.
Its main product is packaged ice sold in stores, reports the WinnipegFreePress.com. It also supplies commercial users, including bakeries and meat processors. Ice in bulk containers are sold primarily to poultry processors, the commercial fishing industry, chemical plants and concrete plants.
H.I.G. specializes in providing capital to small and medium-size companies. Founded in 1993, it has more than $8.5 billion of equity capital under management with a portfolio of more than 50 companies.