P&O to sell cold logistics unit for $323 million

P&O to sell cold logistics unit for $323 million

   London-based ports and ferries group Peninsular and Oriental Steam Navigation Co., recent subject of a takeover approach, said today it is selling its cold logistics business to Canada’s Versacold Holdings Corp. for '183 million ($323 million.)

   P&O Cold Logistics has more than 3,000 employees located across about 50 sites in the United States, Australia, New Zealand and Argentina. Last year the company had a revenue of '205.6 million ($363 million.)

   “As P&O continues to focus on its fast growing international ports business, it is time to look to another owner to take the cold logistics business to the next stage,” said Robert Woods, P&O’s chief executive officer.

   “The acquisition will significantly strengthen Versacold’s North American platform by positioning us as the third-largest PRW company in the strategically important U.S. market and, in particular, the market leader in two of the top U.S. regional markets — California and Texas,” said Brent Sugden, CEO of Versacold.

   Both parties expect the transaction to be completed in December, when P&O said it will use the money to clear some of its debt. Also, under    terms of the transaction, P&O will become a material stakeholder of Versacold by agreeing to take back $60 million of a new series of extendible convertible unsecured subordinated debentures of Versacold.