Cloverleaf Cold Storage to merge with Fort Smith, Ark.-based Zero Mountain Inc.
SIOUX CITY -- The Sioux City-based Cloverleaf Cold Storage has entered into an agreement to merge with Zero Mountain Inc., based in Fort Smith, Ark., establishing the fifth-largest cold storage warehouse platform in the United Stares, with about 140 million cubic feet of capacity, the companies said in a joint news release.
Cloverleaf is the leading cold storage warehousing company, serving customers from its Midwest and Southeast locations, and Zero Mountain is a cold storage warehousing and transportation company, serving customers across Arkansas.
The merged company will have a presence in nine states and a presence in all three major protein production corridors.
Terms of the transaction were not disclosed.
“I am pleased that these two great companies are joining forces,” said Bill Feiges, Cloverleaf’s co-CEO, said. “The Cloverleaf team has long admired Zero Mountain, which has been built over generations by the Rumsey family upon business values similar to our own.”
Zero Mountain ships more than 2.5 billion pounds of food annually and manages more than 38 million cubic feet of total capacity in five cold storage warehouses, with expansions underway both in Arkansas and Texas.
Cloverleaf operates 19 warehouses with more than 102 million cubic feet of total capacity, across the Midwest and Southeast United States. Cloverleaf serves more than 800 customers, some for more than 30 years.
“I am excited that we are able to come together with Cloverleaf to create one of North America’s largest players in the cold storage business,” Mark Rumsey, chairman of Zero Mountain, said. “The Cloverleaf team is well respected in the industry, and I’m delighted that we have this opportunity to partner with them.”
Mark Rumsey and Joe Rumsey will retain leadership roles in the newly combined business.
Existing investors in Cloverleaf, which includes private equity funds affiliated with Blackstone 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.