Winnipeg, Manitoba, May 5, 2008 - Arctic Glacier Income Fund today announced its operating subsidiary, Arctic Glacier Inc., has acquired the assets and operations of Koldkist Ice of Portland, Oregon.
Koldkist is a major supplier of packaged ice and bottled water in the Pacific Northwest and the principal supplier in northern Oregon and southern Washington, including the metropolitan Portland region, with annual revenues of US$8.5 million.
"The acquisition of Koldkist continues the implementation of Arctic Glacier's growth strategy," said Keith McMahon, President and CEO of Arctic Glacier. "The transaction extends our market presence northward from California and creates a new platform for further expansion in the Pacific Northwest."
Koldkist was established in 1972 by the Porcelli family of Portland, and Charlie and Jim Porcelli have agreed to join the Arctic Glacier management team, helping to lead Arctic Glacier's growth in the region. "This deal gives us the opportunity to continue expanding in association with a brand name that's known across North America for high quality," said Jim Porcelli, President of Koldkist Beverage Ice, Inc. "We are very pleased that Arctic Glacier, with its excellent industry reputation, has acquired the Company," added Charlie Porcelli, Vice President of Koldkist.
The business operates a modern automated ice-making plant with a daily production capacity of 390 tons and storage space for more than 3,500 tons. Koldkist is also a Culligan bottled water franchisee, with more than 6,000 customers and a daily production capacity of 2,400 five-gallon bottles. The packaged ice and bottled water businesses employ 57 people on a full-time basis.
In conjunction with this acquisition, the Fund's lenders have increased their commitment under the existing revolving term credit facility by US$26 million, to a total of US$161 million to accommodate the purchase and provide additional working capital.
Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc., is a leading producer, marketer and distributor of high-quality packaged ice in North America under the brand name of Arctic Glacier® Premium Ice. Arctic Glacier operates 38 production plants and 51 distribution facilities across Canada and the northeast, central and western United States servicing more than 75,000 retail accounts.
Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are 38.9 million trust units outstanding.