Denver - (December 15, 1997) - Security Capital Industrial Trust (SCI) (NYSE: SCN), a leading global owner and operator of distribution facilities, announced that it has entered into a definitive agreement to acquire Frigoscandia AB, Europe's largest refrigerated distribution company, for $395 million (U.S.). The transaction includes 90 distribution facilities in eight European countries, totaling 185 million cubic feet. Upon completion of the transaction, which is scheduled to close in mid-January 1998, SCI-at 263 million cubic feet-will be the largest international refrigerated distribution company in the world.
"The acquisition of Frigoscandia will add 4,750 customers to SCI's customer base, providing an extraordinary, global platform for growth of the SCI International Operating System," said K. Dane Brooksher, co-chairman and chief operating officer. "Eight of Frigoscandia's largest 20 customers are also SCI customers, which gives us a tremendous opportunity to expand relationships with companies such as Nestle, Sara Lee, Pepsi, Mars and Unilever," he added.
Mr. Brooksher noted that fully developing the SCI International Operating System in Europe, as SCI has done in the U.S., will allow the company to approach global customers from a single, unified operating network. "This creates the foundation for SCI to develop and maximize relationships with U.S. customers expanding operations to Europe, as well as European customers entering U.S. markets," he said.
Frigoscandia, the only fully dedicated refrigerated distribution facilities owner and operator with a Pan-European presence, currently commands 15% of the overall European market share-more than twice that of the next-largest competitor. The company serves its customers across Europe from eight markets, including Denmark, France, Germany, Norway, Sweden and the United Kingdom, and is the market leader in five.
"Implementation of Frigoscandia's strategic plan to further develop its Pan-European network creates attractive customer-driven capital deployment opportunities for SCI in Europe," said Irving F. Lyons III, co-chairman and chief investment officer. "In addition, with frozen food consumption in Europe growing at twice the rate of that in the U.S., serving the frozen food industry's expansion requirements presents SCI with a formidable growth opportunity."
SCI is the largest publicly held, U.S.-based global owner and operator of distribution facilities with operations in the United States, Europe and Mexico. SCI's primary objective is to build shareholder value through long-term, sustainable growth in per-share cash flow. The company expects to achieve this objective through the SCI International Operating System, which provides exceptional corporate distribution facilities and refrigerated logistics services to meet customer expansion and reconfiguration needs globally. As of November 30, 1997, SCI had 101.2 million square feet of distribution space operating or under development in 37 U.S. markets and 21 targeted international markets.
In addition to historical information, this press release contains forward-looking statements under the federal securities laws. These statements are based on current expectations, estimates and projections about the industry and markets in which Security Capital Industrial Trust operates, management's beliefs and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties which are difficult to predict. Actual operating results may be affected by changes in national and local economic conditions, competitive market conditions, weather, obtaining governmental approvals and meeting development schedules, and therefore, may differ materially from what is expressed or forecasted in this press release.