Arctic Glacier Income Fund

Arctic Glacier Income Fund

September 19, 2005 08:45 ET

Arctic Glacier Announces Acquisition of Leading Wisconsin Packaged Ice Provider

WINNIPEG, MANITOBA--(CCNMatthews - Sept. 19, 2005) -

Accretive acquisition adds $10 million to annual revenues

Arctic Glacier Income Fund (TSX:AG.UN) today announced it has significantly enlarged its midwestern U.S. market coverage by acquiring the assets of the ice division of Hometown Inc. of Milwaukee, Wisconsin.

Hometown operates an ice, fuel oil and service station business in eastern Wisconsin and northeastern Illinois. The company's ice division is the leading provider of packaged ice in Wisconsin, serving all major markets including Milwaukee, Madison and Green Bay.

"This acquisition extends our market coverage eastward from our strong base of operations in Minnesota and Iowa, and is consistent with Arctic Glacier's approach to executing its growth strategy through geographically contiguous transactions," said Robert Nagy, President and CEO of Arctic Glacier Inc., the Fund's operating company.

The assets of Hometown are expected to contribute an additional $10 million to Arctic Glacier's annual revenues. The acquisition will be funded from the proceeds of Arctic Glacier's $50 million equity offering, scheduled for completion on September 20, 2005.

"This acquisition will be accretive to distributable cash in its first full year of operations, and it holds the prospect of further growth in the future," said Keith McMahon, the Fund's Executive Vice President and CFO. "We also expect to benefit from synergies with the existing business that Arctic Glacier services in Wisconsin, plus our operations in Minnesota and Iowa."

Hometown traces its roots in the ice business back to 1849. The current principal is D. Weston (Wes) Day, the company's President. Facilities being acquired, all located in Wisconsin, include production plants in Madison, Neenah and Sturgeon Bay plus a distribution center in Wausau. Not included is a production plant in Milwaukee that Hometown has closed. Package ice supply for the Milwaukee market will be achieved through expansion of production capacity in Wisconsin plants.

Arctic Glacier Income Fund, through its operating company, Arctic Glacier Inc., is a leading producer, marketer and distributor of high-quality packaged ice in North America under the brand name of Arctic Glacier® Premium Ice. Arctic Glacier operates 26 production plants and 41 distribution facilities across Canada and the central and northeastern United States servicing more than 53,000 retail accounts.

Arctic Glacier Income Fund trust units are listed on the Toronto Stock Exchange under the trading symbol AG.UN. There are 23.4 million trust units outstanding.

This news release contains forward-looking statements, which are subject to certain risks, uncertainties and assumptions. A number of factors could cause actual results to differ materially from the results discussed in these forward-looking statements, and there is no assurance that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as at the date of this news release, and the Fund assumes no obligation to update or revise them, either publicly or otherwise, to reflect new events, information or circumstances.

Contact Information

  • Arctic Glacier Inc.
    Robert Nagy
    President & CEO
    Toll free: 1-888-573-9237
    Arctic Glacier Inc.
    Keith McMahon
    Executive VP & Chief Financial Officer
    Toll free: 1-888-573-9237
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