Private equity firm TorQuest Partners has acquired VersaCold Logistics Services, one of Canada’s largest cold storage and logistics companies, in a deal that reflects the strong growth opportunities in the Canadian market.
Toronto-based TorQuest, in partnership with the Canadian pension funds Investment Management Corporation of Ontario (IMCO) and OPTrust, purchased VersaCold from KingSett Capital and Ivanhoe Cambridge. The price and terms were not disclosed for the transaction, which was announced on Wednesday.
The deal is effectively a bet on the future of the Canadian consumer, population growth and growing demand for food products. VersaCold has 31 temperature-controlled facilities across Canada, and also has an asset-based truck fleet, with over 500 power units handling domestic and cross-border truckload and less-than-truckload operations.
“We are excited to be partnering on this investment with the VersaCold team,” Jonathan Fraser, a partner at TorQuest, said in a statement. “VersaCold is an attractive business with significant growth potential, and we look forward to capitalizing on the company’s recent success by continuing to leverage its strategic locations, commitment to food safety and outstanding customer service.”
TorQuest’s investment follows Lineage Logistics’ expansion into Canada with its July acquisition of Ontario Refrigerated Services.
According to VersaCold, the deal won’t bring any immediate changes.
“We welcome this investment and look forward to working with our new partners to capitalize on growing demand for cold storage logistics solutions,” Mike Arcamone, CEO of VersaCold, said in a statement. “There will be no changes to the day-to-day operations as a result of the transaction and we remain fully committed to giving our customers the very best end-to-end supply chain solution available.”
TorQuest has over CA$3 billion ($2.35 billion) under management.