Avion to offer C$574 million for Atlas Cold Storage

Avion to offer C$574 million for Atlas Cold Storage    Iceland’s Avion Group, on behalf of its new subsidiary, Eimskip Atlas Canada Inc., said today it would make a C$574 million ($510.7 million) offer for the outstanding shares in Atlas Cold Storage, the North America’s second-largest cold storage company.
   The offer represents C$7 ($6.23) per share and requires just over two-thirds acceptance from Atlas Cold Storage’s shareholders to be successful.
   Atlas Cold Storage has 53 temperature controlled distribution centers in the United States and Canada, and last year posted profit of C$55 million ($48.9 million) after revenue of C$470 million ($418.2 million).
   Eimskip Canada’s offer would be financed by Avion and KingStreet Real Estate Growth LP who already respectively own 9.5 percent and 4.4 percent of Atlas Cold Storage.
   “We have looked at a number of acquisition opportunities across North America and while there are several options available to us, it is our current intention to pursue this transaction seeking to integrate Atlas with Eimskip, our temperature controlled transportation and logistics subsidiary,” said Magnus Thorsteinsson, Avion’s executive chairman.
   Avion said that upon completion of the acquisition, Eimskip has the potential to double its current annual turnover to approximately ISK70 billion ($993 million).