Americold forms $1.3 billion joint venture with private equity firm

DC Velocity

Temperature controlled storage specialist Americold Realty Trust Inc. has formed a $1.3 billion joint venture with the private equity firm EQT focused on the ownership, operation, and potential development of cold storage warehouse facilities in North America.

Atlanta-based Americold will contribute 12 cold storage facilities to the joint venture with an aggregate value in excess of $1.3 billion at inception. The facilities are located across the United States and comprise a total of approximately 124 million cubic feet of temperature-controlled capacity, with over 400,000 combined pallet positions.

Under the agreement, EQT will acquire a 70% interest in the joint venture, while Americold retains a 30% stake and serves as day-to-day manager of the platform. Through that exchange, Americold expects to receive approximately $1.1 billion in net cash proceeds, which is expected to be used to repay outstanding debt.

According to the partners, the joint venture will serve as a long-term platform for future growth. That will be underpinned by EQT’s experience in temperature-controlled logistics, including through its ownership of one of Europe’s largest cold storage providers, Constellation Cold Logistics.

“We are excited to partner with Americold to invest in a high-quality portfolio of truly mission-critical assets,” Alex Greenbaum, Partner and Head of EQT Active Core Infrastructure, said in a release. “We believe this platform is anchored by best-in-class cold storage assets serving blue chip customers and is well positioned for long-term growth. This investment aligns closely with our strategy of investing in core infrastructure assets with durable, predictable characteristics and clear opportunities for growth. We look forward to further developing, enhancing, and scaling the platform over time.”

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