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Arctic Glacier Acquires Largest Ice Company in
Philadelphia Market
Acquisition of Brandywine Ice broadens market base in
northeastern U.S.
WINNIPEG, October 31, 2003 –Arctic Glacier
Income Fund (TSX-AG.UN) announced today its operating company,
Arctic Glacier Inc., has acquired Brandywine Ice Company of Twin
Oaks, Pennsylvania, a leading manufacturer and distributor of
packaged ice in the northeastern U.S.
Brandywine Ice, with annual revenue in excess of CA$7 million,
services a market area with a population of more than 10 million
people. Brandywine’s primary markets are in eastern Pennsylvania,
southern New Jersey, northern Delaware and northeastern Maryland.
Robert Nagy, President and CEO of Arctic Glacier Inc., noted the
Brandywine acquisition closely follows the purchase of Rosenberger
Ice of Hatfield, Pennsylvania, earlier this year.
“Brandywine is the major platform acquisition that significantly
expands our initial market position in this key region that we
entered earlier this summer,” said Mr. Nagy. “Brandywine Ice is the
leader in its area and is one of the most respected companies in the
industry. This acquisition is a continuation of our strategy of
building a major market presence in the northeastern U.S. market and
making investments that are accretive to distributable cash.”
Keith McMahon, Executive Vice President and CFO of Arctic Glacier,
said Brandywine’s modern, highly automated manufacturing facility in
the Philadelphia suburb of Twin Oaks was a key component of the
investment decision.
“The Twin Oaks manufacturing facility has significant excess
production capacity, which will allow Arctic Glacier to
cost-efficiently service all of our production requirements for the
entire market area. As a result of the Brandywine Ice acquisition,
it will not be necessary for Arctic Glacier to invest in a new
production facility in this market.”
“In addition, the acquisition of Brandywine Ice will provide Arctic
Glacier with significant distribution efficiencies,” Mr. McMahon
added.
Pete Stack, the President of Brandywine, is a 30-year veteran of the
packaged ice business. He has agreed to stay on for approximately
two years to assist in the transfer of ownership, following which he
plans to retire. “Brandywine has worked hard to become the leader in
our market area, and we look forward to joining Arctic Glacier,”
said Mr. Stack.
The acquisition was funded with bank debt and proceeds from Arctic
Glacier’s $50 million offering of trust units in October. The fund
will continue to pursue near-term acquisition opportunities of high
quality businesses operating in the packaged ice industry.
The Brandywine Ice acquisition builds on Arctic Glacier’s
penetration of the northeastern U.S. market that began in February
2003 with a licensing agreement signed with Creed Ice Co., Inc. of
Vermont. That was followed in April by a licensing agreement signed
with Getchell Bros. Inc. of Maine. In June, Arctic Glacier acquired
Rosenberger Ice, with annual sales of CA$5 million, followed in July
with the acquisition of Springdale Ice Company of Mamaroneck, NY and
its affiliated company, Diamond Ice Cube Company Inc. of Bronx, NY,
with sales of CA$16 million.
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 21 production
plants and 35 distribution facilities across Canada and the central
and northeastern United States servicing approximately 40,000 retail
accounts.
Arctic Glacier Income Fund trust units are listed on the Toronto
Stock Exchange under the trading symbol AG.UN. There are 23.30
million trust units outstanding.
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For further information, call Arctic Glacier Inc.
TOLL FREE at 1-888-573-9237 or log on at
www.arcticglacierinc.com
(Signed) On behalf of the Board of Trustees of
Arctic Glacier Income Fund, Robert Nagy, President & CEO.
The Toronto Stock Exchange does not approve or disapprove of the
adequacy or accuracy of this release.
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