U.S. private equity firm Carlyle Group has acquired Arctic Glacier Group Holdings Inc, a Canadian manufacturer and distributor of packaged ice to consumers across North America. No financial terms were disclosed. Carlyle bought the Winnipeg-based company from U.S. private equity firm HIG Capital, which acquired it out of bankruptcy in 2012 for US$434.5 million. Earlier this month, the Wall Street Journal said HIG was planning to sell Arctic Glacier to Carlyle for US$723 million. Founded in 1996, Arctic Glacier serves more than 75,000 retail accounts. It is the fifth investment of Carlyle Global Partners, Carlyle’s long-duration fund, which raised US$3.6 billion last year.
The Carlyle Group Acquires Arctic Glacier from H.I.G Capital
Investment From Carlyle’s Long-Dated Fund To Support Arctic Glacier’s Growth Strategy in North America
Montclair, NJ – Arctic Glacier Group Holdings, Inc., H.I.G. Capital, LLC and The Carlyle Group (NASDAQ: CG) today announced that Carlyle Global Partners, Carlyle’s long-duration investment fund, has completed the acquisition of Arctic Glacier from an investment fund managed by H.I.G. Capital and its existing shareholders. Terms of the transaction have not been disclosed.
Arctic Glacier is a producer and distributor of high-quality packaged ice to consumers in the United States and Canada. Arctic Glacier operates 46 production plants and 52 distribution facilities across Canada and the northeastern, central and western United States servicing more than 75,000 retail accounts.
“Arctic Glacier has established a leading position in the North American packaged ice market due to the company’s investments in, and our employees’ complete dedication to, the highest levels of product quality and customer service,” said Fred Smagorinsky, Chief Executive Officer of Arctic Glacier.
“H.I.G. Capital has fully supported the execution of our strategy and made significant investments in our business over the course of its ownership. Our management team is excited to begin the next phase of our growth trajectory by partnering with The Carlyle Group. Carlyle’s long-term investment vision, substantial supportive resources and collaborative approach will be tremendous assets for Arctic Glacier as we pursue our mission of becoming the top packaged ice company in North America,” said Smagorinsky.
“Arctic Glacier is a great fit for Carlyle Global Partners due to its leading market positions, strong customer relationships and outstanding management team,” said Tyler Zachem, Managing Director and Co-head of Carlyle Global Partners. “We look forward to partnering with the Arctic Glacier team to support the company’s growth strategy.”
The Carlyle Group was advised by Credit Suisse, Ernst & Young LLP, Kirkland & Ellis LLP and Latham & Watkins LLP. The sellers were advised by Piper Jaffray and Ropes & Gray LLP.
About Arctic Glacier
Founded in 1996, Arctic Glacier is a leading producer, marketer and distributor of high-quality packaged ice to consumers in the United States and Canada, primarily under the brand name of Arctic Glacier Premium Ice. Arctic Glacier operates 46 production plants and 52 distribution facilities across the northeastern, central and western United States and Canada servicing more than 75,000 retail accounts.
Arctic Glacier is a parent company of Arctic Glacier Canada Inc. and Arctic Glacier U.S.A., Inc.
About The Carlyle Group and Carlyle Global Partners
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $158 billion of assets under management across 281 investment vehicles as of December 31, 2016. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,600 people in 35 offices across six continents. www.carlyle.com
Carlyle launched its longer-term private equity strategy, Carlyle Global Partners, in 2014 to pursue opportunities that leverage Carlyle’s expertise, resources and global platform in investments that benefit from longer hold periods and structural flexibility. Arctic Glacier is the fifth investment in Carlyle’s Global Partners fund. Carlyle Global Partners pursues investments with the potential for attractive returns and net asset value appreciation over a longer time horizon than traditional private equity funds. CGP has a flexible investment mandate, is sector- and geography-agnostic, and has limited need for nearer-term liquidity events, enabling it to be a differentiated partner with management teams, family businesses and corporate partners to build businesses over the long-term.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with $21 billion of equity capital under management. Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and Mexico City, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach:
H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com
The Carlyle Group:
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