Aquisition Cloverleaf announces merger with Zero Mountain
With approximately 140 mill. cubic feet of capacity in nine states, and a presence in all three major protein production corridors, the combined companies will become the fifth largest cold storage warehouse in the United States. Terms of the transaction were not disclosed.
Zero Mountain was founded in 1955 by the Rumsey family. The business ships over 2.5 bn. pounds of food annually and manages over 38 mill. cubic feet of total capacity in five cold storage warehouses, with expansions underway both in Arkansas and Texas.
Cloverleaf was founded in 1952 by the Kaplan and Feiges families, and currently operates 19 warehouses with over 102 mill. cubic feet of total capacity, across the Midwest and Southeast United States. Cloverleaf serves over 800 customers, many with whom the company has had a relationship for more than 30 years.
Mark Rumsey and Joe Rumsey will retain leadership roles in the newly combined business. Existing investors in Cloverleaf, which include private equity funds affiliated with Blackstone (NYSE:BX), the Kaplan and Feiges families, and Medley Management, collectively will invest significant additional equity to facilitate the transaction, which is expected to close during the first quarter of 2019.
Alford Law and Dykema served as legal advisors to Zero Mountain during the transaction. Wells Fargo Securities served as financial advisor and Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP served as legal advisors to Cloverleaf.