P&O COLD LOGISTICS IN FURTHER US EXPANSION
The Peninsular and Oriental Steam Navigation Company announces that P&O Cold Logistics has acquired two businesses in Texas. The first consists of the assets of the Texas Freezer Company near Dallas. The second is the distribution centre of Alford Refrigerated Warehouses in Houston. The total consideration is approximately US$ 30 million.
The acquisitions are in line with P&O’s strategy of extending its cold logistics capability in the US market. P&O is one of the world’s leaders in state of the art storage and distribution of refrigerated goods, with a focus on the retail sector. From its extensive base in Australia, it is now one of the largest cold logistics companies in the US with a strong position on the West Coast and in the Southern States.
Commenting on the announcement, P&O Cold Logistics Chairman, Richard Hein, said: “These latest acquisitions are consistent with our strategy of extending our presence in the US by concentrating on high growth areas such as Texas. They are both strong businesses with excellent prospects. There are significant further opportunities for us to roll out the P&O brand in response to high customer demand for our services.”
The Texas Freezer Company acquisition adds a further modern cold storage facility to P&O’s US operations. A single building of 6 million cubic ft provides the full range of temperature controlled services including a high quality blast freezing function. Further expansion opportunities are available with the additional land located alongside the current building.
The Alford Refrigerated Warehouses distribution centre is located in Laporte, adjacent to the Houston container terminal. The centre currently has warehouse space of nearly 4 million cubic ft. As with the Dallas business, there is additional land for expansion. P&O Nedlloyd is a major user of Houston with 6 sailings a week, including significant amounts of refrigerated containers.
P&O Cold Logistics Managing Director, John Randall, said: “Both businesses have strong customer bases and experienced management. The Texas Freezer Company will enable us to continue to develop strategic relationships with leading multinational food manufacturers. The proximity of the Alford Distribution Centre to the Port of Houston container terminal provides an excellent opportunity to further integrate our operations with other parts of P&O’s logistics business.”
Today’s announcement follows P&O’s purchase of Loop Cold Storage in San Antonio, Texas in August 1999. Mr Randall continued: “With the two acquisitions today, we will be able to offer retailers, supermarkets, importers and exporters high quality storage and distribution services in the three major urban areas of Texas – Houston, Dallas and San Antonio.”
Further information: Peter Smith, Director, P&O
020 7930 4343
John Randall, Managing Director, P&O Cold Logistics
00 61 2 9364 5208
Bill Duffy, President, USA Operations, P&O Cold Logistics
001 310 632 6265
Notes to Editors
1. P&O Cold Logistics first entered the US in 1994 with its acquisition of Pacific Cold Storage in Los Angeles and Henderson Cold Storage in Nevada. They subsequently moved into Salt Lake City, Utah and San Antonio, Texas as well as extending in Los Angeles. Their US customers include Wal Mart, Unilever, Mars and Nestlé.
2. In 1999, P&O Cold Logistics earned £13.6 million before interest and tax giving a margin on revenue of 16% and a return on capital employed (excluding development capital) of 14%.
