Prologis sells UK chilled logistics subsidiary
ProLogis, a global provider of distribution facilities and services, has sold its temperature-controlled logistics operations in the United Kingdom. Celsius First, formerly known as Frigoscandia Limited, was sold in late December 2003 for approximately £39m (€55.7m) to Oregon Capital Partners, an industrial holding group, and Bank of Scotland Corporate Banking.
Celsius First claims to have a 30% market share of the UK frozen food primary distribution business and has 8 temperature controlled storage facilities located throughout the UK.
Prologis initially entered the European temperature controlled logistics sector in 1997 with the acquisition of Frigoscandia from ASG (now part of DPWN). It added to the business with a number of acquisitions before taking the decision in 2002 to withdraw from the market. Frigoscandia Nordics was the first division to be sold to a management buy out and Triton, a private equity investment company. Frigoscandia retained the trademark whilst the UK division changed its name.
Whilst Prologis is withdrawing from the temperature controlled market it continues to increase its position in the national and European warehousing market. It has recently entered into a new deal to provide Vitesse, the Dutch subsidiary of French logistics company Geodis, with a facility of 20,000 sq m which will be used as dedicated distribution centre for a high tech company in Venlo.
Prologis and Geodis have developed an extensive partnership throughout Europe. In addition to the new facility in Venlo, Geodis also leases distribution centres from Prologis in Madrid, Evry (France), Budapest (Hungary) and Rotterdam amounting to a total capacity in excess of 80,000 sq m. Prologis has in total a capacity of 2.3 million sq m in Europe either owned, leased or under construction.
