Late Sunday, Vornado Realty Trust (VNO) said that it entered into an agreement to sell its entire interest in AmeriCold Realty Trust to private equity fund The Yucaipa Companies for net proceeds of $220 million. The sales price is based on $1.52 billion valuation before debt and other obligations. The company noted that the sale would result in a gain of about $110 million. In addition, Morgan Stanley Real Estate has also agreed to sell its interest in AmeriCold to Yucaipa, which will then own 100% of AmeriCold.
The New York-based Vornado said that the sale, subject to customary closing conditions and adjustments, is expected to close immediately. Citigroup and Morgan Stanley advised Vornado and Morgan Stanley Real Estate on the transaction.
Vornado previously owned a 47.6% interest in Americold Realty Trust, which owns and operates 85 cold storage warehouses. Americold is the largest provider of temperature controlled food distribution services in the U.S.
In November 2004, Vornado and Texas-based Crescent Real Estate Equities had announced that they entered into a definitive agreement to create a real estate investment trust and collectively sell 20.7% of AmeriCold's common shares to Yucaipa for $145 million. At that time, Los Angeles-based Yucaipa had taken over the day-to-day operations of AmeriCold.
The Yucaipa Companies was founded in 1986 by its billionaire chairman Ronald Burkle. The company has acquired stakes in Colorado-based Wild Oats Markets Inc., New Jersey-based Pathmark Stores Inc. and Minnesota-based Supervalu Inc. (SVU), among others. The company sold its interest in Pathmark to A&P last year.
VNO closed Friday's regular trading session at $87.62, up $0.66 or 0.76% on a volume of 1.74 million shares.
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