Swedish global investor EQT announced on Monday that its EQT Infrastructure VI fund has agreed to acquire Constellation Cold Logistics, a major owner-operator of cold storage facilities in Europe.
The business was sold by Arcus Infrastructure Partners for an undisclosed amount.
Constellation was established in 2020 by Arcus Infrastructure Partners, which brought together three businesses located in Belgium, Norway and the Netherlands. Just four years later, Constellation today 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 over €150 mln in FY24.
Constellation provides temperature-controlled storage capacity and complementary services to a wide range of food producers, traders and retailers. Its sites are located either close to clients’ production and processing premises or near critical logistics routes to major cities, ports or food hubs.
Led by CEO Carlos Rodriguez and supported by 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, the company said in a statement.
Francesco Malvezzi, managing director within the EQT Value-Add Infrastructure Advisory Team, said: '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.'
Carlos Rodriguez, CEO of Constellation, said: '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.'
The transaction is expected to close in October 2024.
With this transaction, EQT Infrastructure VI is expected to be 40 – 45% invested based on target fund size and subject to customary regulatory approvals.
