EQT recently acquired Constellation Cold Logistics, the third-largest cold storage operator in Europe, from Arcus Infrastructure Partners through its EQT Infrastructure VI fund.
Terms of the transaction, which is expected to close in October, were not disclosed.
Arcus established Constellation in 2020 by combining businesses located in Belgium, Norway, and the Netherlands. Four years later, Constellation owns and operates 26 large cold storage facilities across seven countries in Western Europe and the Nordics, EQT reported. The London-headquartered firm employs 700 people and is expected to generate revenues over €150 million ($161.2 million) in fiscal year 2024.
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. By offering warehousing and value-added services in these strategic locations in an efficient, flexible, and responsive manner, Constellation provides a critical service to its customers that ensures their supply and logistics chains remain smooth and safe.
“Constellation is one of the leading cold storage providers in Europe with an excellent track record of growth, both organically and through M&A,” Francesco Malvezzi, managing director within the EQT value-add infrastructure advisory team, said in a news release. “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 [Constellation CEO] Carlos [Rodriguez] 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.”
The European cold storage market features strong underlying growth of around seven percent per year, driven by multiple factors. For one, growing populations are leading to a greater demand for food. At the same time, the popularity of frozen and chilled foods is growing as the sector and customers recognize how these categories reduce food waste and improve quality. Producers are also increasingly adopting outsourcing, just-in-case supply chain strategies, and value-added services as the industry matures.
EQT will support Constellation as it works to capture this market opportunity. Led by Rodriguez, the company already proved its ability to execute acquisitions, having completed 10 deals in the past four years. With EQT, Constellation will be able to further expand within its existing catchment areas and enter new countries, both organically and through consolidation of the fragmented European market. Additional investment will be made into Constellation's automation and digital capabilities to solidify a stronger foundation for growth, EQT 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,” Rodriguez said. “We will maintain an absolute focus on responsiveness and customer service together with our commitment to sustainability on our path to net-zero. We’re excited to continue implementing our 2030 strategic plan with the support of EQT, which brings strong infrastructure experience, global scale, and deep expertise in areas like sustainability and digitalization.
“I’d like to thank the Arcus team for its dedication to this point but, most of all, I’d like to thank all Constellation’s employees for their hard work and continuous support as the company evolves.”
