- Americold announced its acquisition of Agro Merchants Group for $1.74 billion in a press release Monday. The transaction is an effort to retain its status as a top player in cold chain, and is set to close later this year or early 2021 in the first quarter.
- The move will expand Americold's footprint into Europe, add port locations in Europe and the eastern U.S., and prime the company for future M&A, according to the announcement.
- Once the deal closes, Americold will gain over 2,900 customers, 229 facilities and roughly 1.35 billion cubic feet of refrigerated space across four continents: North and South America, Australia and Europe.
The latest round of cold chain consolidation comes as the demand for online grocery (already on the rise) has reached unprecedented heights during the pandemic, driving acquisitions and partnerships among logistics providers to meet the demand.
Atlanta-based Americold, the second largest cold storage supplier in the world after Lineage Logistics, has steadily expanded this year with the acquisition of AMG coming on the heels of two others in August.
The company is using M&A to gain capacity in new and existing markets, attested by its entry into the European market, with new locations also in the U.S., Australia and countries in South America. New clients are all but certain, once Americold's procurement of additional warehouses at eastern U.S. ports and new ports in Europe is finalized.
Acquisitions are one key tactic companies are using to grow their footprint and keep goods flowing to customers, while existing warehouses are updated and new ones are constructed to bear the load.
Americold will add 236 million cubic feet of refrigerated storage to its portfolio, diversify its customer base and expand its fresh produce products and market position, with the purchase of AMG.
Due to its coming presence in Europe and capacity gain, the transaction will better equip Americold to compete with Lineage Logistics, which also has bulked in capacity and reach this year.
This latest acquisition sets the stage for more consolidation and growth in cold chain, holding that e-commerce for grocery keeps demand high.