Arctic Glacier Income Fund

Arctic Glacier Income Fund

August 09, 2006 07:30 ET

Arctic Glacier Announces Completion of California Ice Acquisition

WINNIPEG, MANITOBA--(CCNMatthews - Aug. 9, 2006) - The Arctic Glacier Income Fund (TSX:AG.UN) today announced its operating company, Arctic Glacier Inc., has completed the final closing of the previously announced acquisition of California Ice.

California Ice is comprised of six companies that as a group represent the leading independent manufacturer and distributor of packaged ice in California and one of the four largest packaged ice companies in the U.S.

As announced on May 9, 2006, the final closing comprises two of the six companies: Glacier Ice Company, Inc. and South Bay Ice LLC. The acquisition of the remaining four companies was completed at the initial closing on May 25, 2006.

Glacier Ice and South Bay Ice service the San Francisco, Oakland and San Jose metropolitan areas, as well as the California central coast. The companies operate from one of the largest production facilities in North America, located in Fremont, and also operate distribution centers in Capitola, Concord and Rohnert Park.

"We are very pleased to close the acquisition of the remaining two companies. They now provide Arctic Glacier with a statewide presence in the key California market, which is one of the most attractive regions in North America for packaged ice sales," said Robert Nagy, President and CEO of Arctic Glacier. "The California Ice transaction is a powerful expression of our strategy of being the market leader in the regions in which we operate. With the acquisition now complete, Arctic Glacier is the leading packaged ice company on the West Coast."

"The completion of our acquisition of California Ice provides the Fund with a new operating unit that dramatically adds to revenues and strengthens generation of distributable cash," said Keith McMahon, Executive Vice President and CFO of Arctic Glacier. "It also provides a solid platform for further growth in the future."

With the completion of the acquisitions of Glacier Ice Company, Inc. and South Bay Ice LLC, Arctic Glacier will have annualized sales of approximately $250 million, and will service more than 68,000 customers through a network of 35 production plants and 50 distribution facilities throughout Canada and the northeastern, central and western United States.

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 35 production plants and 50 distribution facilities across Canada and the northeastern, central and western United States, servicing more than 68,000 retail accounts.

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

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 Income Fund
    Robert Nagy
    President & CEO
    Toll free investor relations phone: 1 (888) 573-9237
    Arctic Glacier Income Fund
    Keith McMahon
    Executive VP & Chief Financial Officer
    Toll free investor relations phone: 1 (888) 573-9237