Reddy Ice Holdings Inc has completed the divestiture of its bottled water business and substantially all of its cold storage business for total gross proceeds of $20.25 million. The businesses disposed of generated revenue and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of approximately $9.0 million and $1.6 million, respectively, for the 12 months ended June 30, 2007.
The firm’s senior credit agreement requires that net proceeds from the sale of Reddy Ice’s non-ice businesses must be used either to repay term borrowings under the credit facility or to make acquisitions and/or capital expenditures within 12 months of receipt of such proceeds. Reddy Ice is reviewing its options regarding use of the net proceeds.
So far in the third quarter of 2007, the company has completed three more acquisitions for an aggregate purchase price of about $2.8 million.