Los Angeles CA-based investment firm The Yucaipa Companies LLC has announced the $2.0 billion global restructuring of Hf Eimskipafelag Islands (Eimskip), a top shipping and logistics company in Iceland and the North Atlantic.
Yucaipa worked with Eimskip and Landsbanki to formulate a strategic plan that would allow the company to return to its core shipping and logistics business. Yucaipa’s commitment to fund new equity into Eimskip marks the first major investment by a US firm since Iceland’s economic meltdown.
Eimskip was founded in 1914 as Iceland’s first shipping company and since then has played a vital role importing and exporting goods to and from Iceland. Eimskip also has shipping and distribution operations in the Faroe Islands, Norway, and Europe. It reports sales of $736 million and is an active participant in the worldwide refrigerated logistics business.
Yucaipa also announced the acquisition of 49% of Versacold International Corp from parent Eimskip and an option to purchase the remaining 51%. Versacold is the second-largest cold storage company in the world with sales of more than $1.2 billion. A provider of frozen food logistics and supply chain services, the company operates more than 120 temperature-controlled warehouses and distribution centers across the United States, Canada, Argentina, New Zealand, and Australia. Versacold has a large integrated cold storage network.
Yucaipa is also the owner of Americold Realty Trust, a leader in the US temperature-controlled food logistics industry. Americold operates 104 cold storage facilities in the United States and has a sizeable transportation and distribution product offering.
At present, Yucaipa will not acquire a controlling stake in Versacold. Consequently, both Americold and Versacold will continue to operate independently and compete in the marketplace. Management teams of both firms will remain in place and separate. The boards of directors of both companies will also be independent.