Stockholm-headquartered EQT, a Swedish private equity firm, on June 24 announced that the EQT Infrastructure VI fund has agreed to acquire Constellation Cold Logistics from Arcus Infrastructure Partners. Financial details for the purchase of the third largest refrigerated warehouse operator in Europe were not disclosed.
Constellation was established in 2020 by Arcus, which brought together three businesses situated in Belgium, Norway and the Netherlands. Within four years the company has expanded to the point where today it owns and operates 26 large cold storage facilities across seven countries in Western Europe and the Nordics. The London-headquartered firm employs 700 people and is expected to generate revenues exceeding EUR 150 million in FY24.
Constellation provides temperature-controlled storage capacity and complementary services to a wide range of food producers, traders and retailers. Its sites are situated either close to clients’ production and processing premises or near critical logistics routes to major cities, ports or food hubs. By offering warehousing and value-added services in these strategic locations in an efficient, flexible and responsive manner, the company provides a critical service to customers that ensures their supply and logistics chains remain smooth and safe.
The European cold storage market features strong underlying growth of around seven percent per year, driven by multiple factors. For one, growing populations are leading to a greater demand for food. At the same time, the popularity of frozen and chilled foods is growing as the sector and customers recognize how these categories reduce food waste and improve quality. Producers are also increasingly adopting outsourcing, just-in-case supply chain strategies, and value-added services as the industry matures.
EQT. will support Constellation as it works to capture this attractive market opportunity. Led by highly experienced CEO Carlos Rodriguez, the company has already proven its ability to successfully execute mergers and acquisitions, having completed ten deals in the past four years. With EQT, Constellation will be able to further expand within its existing catchment areas and enter new countries, both organically and through consolidation of the highly fragmented European market. Additional investment will be made into Constellation’s automation and digital capabilities to solidify a stronger foundation for growth.
Francesco Malvezzi, managing director of the EQT Value-Add Infrastructure Advisory Team, stated: “Constellation is one of the leading cold storage providers in Europe with an excellent track record of growth, both organically and through M&A. It offers strong diversification across geographies, customers and end-markets and has impressive service offerings, customer focus and facilities. We’re excited to start working with Carlos and the team to help build an even stronger platform for continued growth. With EQT’s expertise in owning infrastructure companies that provide inherent essential services to society, we’ll be able to support Constellation as it works to deliver safe, quality food to people across Europe.”
Rodriguez commented: “In four short years, Constellation, with support from Arcus, has expanded into one of the largest cold storage players in Europe, enabling our clients to benefit from enhanced accessibility and efficiency in their supply chains. We will maintain an absolute focus on responsiveness and customer service together with our commitment to sustainability on our path to net-zero.”
The transaction is subject to customary conditions and approval. It is expected to close in October 2024.
