Yucaipa Bails Out Eimskip,
Takes Large Stake in Versacold

Yucaipa Companies, a Los Angeles, California, USA-headquartered investment firm, has rescued Iceland’s Hf. Eimskipafelag Islands (Eimskip), largest shipping and logistics company in the North Atlantic, with a $2 billion restructuring plan.

The investment firm has also acquired a 49% stake from Eimskip in Versacold International, the second largest cold storage company in the world with sales of over $1.2 billion, with an option to acquire the remaining 51%.

Eimskip was caught in Iceland’s economic meltdown, and Yucaipa worked with the company and Landsbanki to formulate a strategic plan that would allow it to return to its core shipping and logistics business. Yucaipa’s commitment to fund new equity into Eimskip marks the first major investment by a US firm since the meltdown.

Founded in 1914 as Iceland’s first shipping company, Eimskip has played a vital role in importing and exporting goods to and from Iceland ever since. It also has extensive shipping and distribution operations in the Faroe Islands, Norway and Europe. It is the leading shipping company in the North Atlantic with sales of $736 million and is an active participant in the worldwide reefer logistics business.

With more than 120 modern, temperature-controlled warehouses and distribution centers across the United States, Canada, Argentina, New Zealand and Australia, Versacold has the largest integrated cold storage network in the world.

“This is a great outcome to our sale process. Yucaipa is well familiar with our business sector and the food industry as a whole,” said Versacold CEO Brent Sugden. “We share a common vision to be a best in class company and to continue growing the business domestically and globally. Yucaipa has the resources and expertise to make this happen. Versacold has strong brand recognition and I am pleased that we will continue to do business as Versacold and that our management and support teams will continue to serve our valued customers.”