Emergent Cold Latin America will acquire the storage operations of Frigorífico Modelo
Emergent Cold Latin America (Emergent Cold LatAm or the Company), the fastest growing provider of cold storage and logistics services in Latin America, today announced the signing of a definitive agreement to acquire the cold storage operations of Frigorífico Modelo ( Frimosa), a leading agribusiness and logistics company based in Montevideo, Uruguay. This transaction is subject to customary closing conditions, including approval at an Extraordinary General Meeting of Frimosa shareholders, with closing expected in December 2022.
Source: Business Wire
The acquisition will expand the Company's presence in Uruguay and add Paraguay to the growing regional network
As part of the proposed transaction, Emergent Cold LatAm will acquire Frimosa's main West Pole facility, consisting of a 22,000-pallet position cold storage facility, a separate bonded warehouse and substantial land for expansion. In addition, Emergent Cold LatAm will acquire a newly built 8,400-pallet-position warehouse located in Asunción, Paraguay.
Uruguay is recognized as an important logistics and financial hub in South America. The country has a modern infrastructure system with significant connectivity and is considered the gateway to Mercosur through its main ports. Paraguay also plays an important role in the global food trade and has shown significant economic growth figures in recent years.
The acquisition of Frimosa's cold storage operations will expand Emergent Cold LatAm's existing capabilities in Uruguay. In May 2022, the Company completed the acquisition of Polo Logístico de Frio, based in Montevideo. This investment included plans to expand the PLF facility to double its current size, creating operational improvements and better service offerings.
"We believe that the addition of Paraguay and the expansion of our presence in Uruguay will strengthen our portfolio of services in the region that includes storage and transportation," said Neal Rider, CEO of Emergent Cold LatAm. “Some of our important clients in Brazil also operate in Paraguay and Uruguay”, Rider added.
“We are proud to welcome Frimosa employees to the Emergent Cold family”, said Evandro Calanca, General Director of Brazil, Uruguay and Paraguay. "An impressive company and founders, it is no wonder they have created an exceptional business and such strong customer relationships. We are honored that they trust us to continue building on this legacy of excellence," added Calanca.
44 Capital Finanças Corporativas acted as financial advisor and Ferrere Abogados acted as legal advisor to Emergent Cold LatAm.
About Emergent Cold LatAm:
Emergent Cold Latin America (www.emergentcoldlatam.com) is building the highest quality cold chain network to provide end-to-end temperature controlled logistics solutions to its customers throughout Latin America. The company was founded to fill the need for modern cold chain solutions in the market and to meet the growing demand of national and global customers. Emergent Cold LatAm currently operates 24 cold storage facilities, more than 500 trucks and four facilities now under construction to complete a total of 11 countries in Latin America.