DENVER-(January 20, 1998)-Security Capital Industrial Trust (SCI) (NYSE: SCN), a leading global owner and operator of distribution facilities, announced that it has completed the acquisition of Frigoscandia AB, Europe's largest refrigerated distribution company, representing an investment of $395 million (US$). The transaction makes SCI the largest international refrigerated distribution company in the world, with 263 million cubic feet of refrigerated distribution facilities in the U.S. and Europe.
"The acquisition of Frigoscandia adds 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. 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 who are expanding operations to Europe, as well as European customers entering U.S. markets," he said. Frigoscandia currently commands 15% of the European market share-more than twice that of the next-largest competitor-and serves its customers across Europe from eight markets including Denmark, France, Germany, Norway, Sweden and the United Kingdom.
Security Capital Industrial 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 December 31, 1997, SCI had 102.5 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.