Cloverleaf Cold Storage Announces Recapitalization led by Blackstone
November 13 2017 - 4:49PM
Business Wire
Cloverleaf Cold Storage ("Cloverleaf" or the “Company"), a
leading cold storage warehousing and food logistics company owned
by the Feiges and Kaplan families since its founding in 1952, today
announced that it has entered into a definitive agreement to
recapitalize the Company whereby private equity funds affiliated
with Blackstone (NYSE:BX) ("Blackstone") will make a majority
equity investment into Cloverleaf alongside the existing family
shareholders, who will continue to operate the business
post-closing, to support future growth in the Company. Terms of the
transaction were not disclosed.
“At Cloverleaf, we are focused on building our business for the
long-term, continuing to deliver our customers best-in-class
service and supporting our communities,” said Daniel Kaplan,
Co-President of Cloverleaf. “Our partnership with a world-class
firm such as Blackstone provides us with significant capital and
operating resources to invest for growth and continue to expand our
platform. The Feiges and Kaplan families are very pleased to be
working with Blackstone as we begin the next chapter of our growth
story.”
Cloverleaf is a trusted partner to many of the largest food
producers in the world. It operates a network of 19 warehouses
across the U.S. providing a variety of food grade storage,
handling, and freezing services. Its Farmers Produce division
offers value-added processing and logistics services to the protein
industry. Cloverleaf serves over 800 customers, many with whom the
Company holds over 30-year relationships. The Company is committed
to investing alongside its existing and prospective customers’
growing supply chain needs.
Seth Meisel, a Senior Managing Director at Blackstone, said,
“The Feiges and Kaplan families’ multi-decade commitment to
building Cloverleaf into a leading cold storage platform is very
impressive. We are excited to partner with Cloverleaf and its
outstanding management team, and we look forward to supporting
Cloverleaf’s continued growth and expansion.”
David Kestnbaum, a Managing Director at Blackstone, said, “We
are pleased to invest significant capital into Cloverleaf to assist
the Company’s existing shareholders and management team in
continuing to build a market leading platform within the cold
storage industry, which has been a strategic industry we have
prioritized for investment.”
Wells Fargo Securities served as financial advisor and Katten
Muchin Rosenman LLP served as legal advisor to Cloverleaf during
the transaction. Barclays and Goldman Sachs served as financial
advisors to Blackstone and Kirkland & Ellis LLP and Simpson
Thacher & Bartlett LLP served as legal advisors. Committed debt
financing for the recapitalization was provided by Goldman
Sachs.
About Cloverleaf
Cloverleaf Cold Storage is a family owned cold storage warehouse
and processing company. It was founded in 1952 and is now the 8th
largest public refrigerated warehouse company in North America, as
reported by the International Association of Refrigerated
Warehouses, an industry trade group. It has operations in eight
states from the Midwest to the Southeastern US.
About Blackstone
Blackstone is one of the world’s leading investment firms. We
seek to create positive economic impact and long-term value for our
investors, the companies we invest in, and the communities in which
we work. We do this by using extraordinary people and flexible
capital to help companies solve problems. Our asset management
businesses, with over $385 billion in assets under management,
include investment vehicles focused on private equity, real estate,
public debt and equity, non-investment grade credit, real assets
and secondary funds, all on a global basis. Further information is
available at www.blackstone.com. Follow Blackstone on Twitter
@Blackstone.
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version on businesswire.com: http://www.businesswire.com/news/home/20171113006371/en/
BlackstonePaula Chirhart,
+1-212-583-5011paula.chirhart@blackstone.comorCloverleafAdam
Feiges, +1-712-279-8000adam@cloverleaf.com
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