Brookfield Cold Storage enters Atlantic Canada with debut add-on deal

Brookfield Cold Storage, created two years ago in a corporate carve-out by the private equity group of Brookfield Asset Management, has completed its first add-on acquisition.

The company has bought Nova Cold Storage, a provider of refrigerated warehousing, handling and third party logistics for food producers. Based in Halifax, Nova Scotia, the company operates three local cold storage facilities.

The deal’s financial terms were not disclosed.

The acquisition gives Brookfield Cold Storage more than 130,000 square feet of cold storage assets, including a brand new state-of-the-art facility in the Halifax Gateway Logistics Park.

Pierre McNeil, president and CEO of Brookfield Cold Storage, said in a statement the purchase of Nova Cold Storage “marks our entry into the Atlantic Canada market.” Going forward, the plan is to grow the company to service an increasing number of Maritimes-based food producers and users of the Halifax port.

McNeil, who is also COO of Brookfield’s PE group, said additional acquisitions will be made in the region in the future.

Brookfield’s flagship PE fund, Brookfield Capital Partners III, formed Brookfield Cold Storage in May 2013 after buying the Canadian logistics operations of Millard Refrigerated Services. The new business, launched with more than 16 million cubic feet of combined storage capacity in facilities in Alberta and Ontario, was intended to be a national market leader, expanding its footprint through acquisitions, organic growth and new service offerings.

Brookfield Cold Storage was the first platform investment of Brookfield Capital Partners III, which raised US$1 billion in early 2013 to invest in buyouts, consolidations, restructurings and turnarounds in Canada and the United States.

Last week, Brookfield Capital Partners III agreed to back-stop the sale or refinancing of Armtec Infrastructure, a Canadian manufacturer of infrastructure products and engineered construction solutions.

The Toronto-based Brookfield was recently reported to be targeting US$3 billion for its next PE fund offering, Brookfield Capital Partners IV.

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