Canadian mid-market private equity firm TorQuest Partners has acquired VersaCold Logistics Services, a Vaughan, Ontario-based cold storage warehousing and food logistics company, from KingSett Capital and Ivanhoe Cambridge. No financial terms were disclosed. TorQuest partnered in the deal with Investment Management Corp of Ontario and OPTrust.
TORONTO, Dec. 16, 2020 /CNW/ – TorQuest Partners (“TorQuest”) today announced it has completed the acquisition of VersaCold Logistics Services (“VersaCold” or the “Company”), one of Canada’s leading cold storage warehousing and food logistics companies, from KingSett Capital and Ivanhoe Cambridge. TorQuest is partnering on this transaction with The Investment Management Corporation of Ontario (“IMCO”) and OPTrust to support the Company’s continued growth. Terms of the transaction were not disclosed.
VersaCold’s management team, including Mike Arcamone, who has been elevated from President and Chief Operating Officer to CEO, will invest alongside the new investors and will continue to operate the business going forward. Mr. Arcamone succeeds Paul Campbell, who returns to his prior role with KingSett.
“We welcome this investment and look forward to working with our new partners to capitalize on growing demand for cold storage logistics solutions,” said Mike Arcamone, CEO of VersaCold. “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.”
“We are excited to be partnering on this investment with the VersaCold team,” said Jonathan Fraser, a Partner at TorQuest. “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.” This is the first platform investment for TorQuest Partners Fund V, a $1.375 billion fund that closed in March 2020.
“We are proud of the work we have done to help establish VersaCold as an industry leader in Canada, with a strong management team and culture,” said Mr. Campbell. “We know the company is in good hands with Mike and his team, as well as the new investors – and we wish them success.”
Stikeman Elliott LLP served as legal advisor for the purchasers. Osler, Hoskin & Harcourt LLP served as legal advisor for KingSett and Ivanhoe Cambridge, while Greenhill & Co., RBC Capital Markets, and CIBC Capital Markets served as financial advisors.
About VersaCold Logistics Services
VersaCold is Canada’s largest end-to-end supply chain solutions company focused exclusively on the handling of temperature sensitive products. VersaCold delivers a suite of fully integrated logistics services through its national network of industry leading facilities, transportation fleet and advanced technologies that set the benchmark for accessibility, information visualization, real-time tracking and inventory management. VersaCold is proud to play a key role in ensuring the safety, quality and freshness of some of North America’s most beloved food brands, protecting the health and wellness of families across Canada from coast to coast. For more information about VersaCold, please visit www.versacold.com.
About TorQuest Partners
Founded in 2002, TorQuest Partners is a Canadian-based manager of private equity funds. With more than C$3 billion of equity capital under management, TorQuest is currently investing from TorQuest Partners Fund V, a C$1.375 billion fund that closed in March 2020. TorQuest invests in middle market companies and works in close partnership with management to build value. To learn more about TorQuest Partners, please visit www.torquest.com.
About The Investment Management Corporation of Ontario
The Investment Management Corporation of Ontario (IMCO) manages $70 billion of assets on behalf of its clients. IMCO’s mandate is to provide broader public sector institutions with investment management services, including portfolio construction advice, better access to a diverse range of asset classes and sophisticated risk management capabilities. IMCO is an independent organization, operating at arm’s length from government and guided by a highly experienced and professional Board of Directors. Follow us on LinkedIn and Twitter @imcoinvest
With net assets of almost $22 billion, OPTrust invests and manages one of Canada’s largest pension funds and administers the OPSEU Pension Plan (including OPTrust Select), a defined benefit plan with over 96,000 members. OPTrust was established to give plan members and the Government of Ontario an equal voice in the administration of the Plan and the investment of its assets through joint trusteeship. OPTrust is governed by a 10-member Board of Trustees, five of whom are appointed by the Ontario Public Service Employees Union and five by the Government of Ontario.