Atlas agrees to improved C$583 million offer from Avion

Atlas agrees to improved C$583 million offer from Avion    Atlas Cold Storage Income Trust has agreed to an improved takeover offer of C$583 million ($512.5 million) from Iceland’s Avion Group.
   Avion, through its subsidiary Eimskip Atlas Canada, Inc., raised its offer for the outstanding shares in Toronto-based Atlas Cold Storage from C$7 ($6.15) per unit to C$7.50 ($6.59) per unit.
   Eimskip Canada’s offer is financed by Avion and KingStreet Real Estate Growth LP who together already own 13.8 percent of Atlas. Unitholders holding about 20.6 percent of outstanding units have agreed to support the bid and have signed lock-up agreements, Atlas said.
   Atlas is North America’s second-largest cold storage company with 53 temperature controlled distribution centers in the United States and Canada. Last year, the company posted profit of C$55 million ($48.3 million) after revenue of C$470 million ($413.2 million).
   Atlas said it contacted 57 potential bidders and provided confidential data room access to 22 parties before making its decision. “The revised Avion offer is the most attractive third party alternative that Atlas considered or received throughout this process and, accordingly, the trustees have unanimously recommended acceptance of this offer,” said David Williamson, president and chief executive officer of Atlas.
   “This transaction supports our growth strategy and through our enhanced North American footprint we will continue to expand our business,” said Magnus Thorsteinsson, Avion’s executive chairman.
   “With the addition of Atlas, Eimskip, our temperature-controlled transportation and logistics subsidiary, will control a network of more than 90 temperature-controlled facilities around the world.”
   The offer, scheduled for completion Oct. 30, requires at least two-thirds acceptance from Atlas’ unit holders to be successful. Under terms of the agreement, Atlas would have to pay Avion a termination fee of C$15 million ($13.2 million) under certain circumstances.