More cold change as SCS becomes Emergent


Swire deal with new US firm follows quickly after AHG sells to HNA

More cold change as SCS becomes Emergent
Swire Cold Storage is to become Emergent Cold

 

In a little noticed transaction, John Swire & Sons has sold Swire Cold Storage (SCS) in Australia and its coldchain services here, along with Swire Cold Storage Vietnam, to new US firm Emergent Cold.

The deal was sealed just before Christmas and financial details were not disclosed.

"Over the past 60 years, Swire has built the leading cold storage businesses in Australia and Vietnam through dedicated service to customers, commitment to employees and investment in high quality operations," Emergent Cold CEO Neil Rider says.

"We are excited to partner with this outstanding management team, and we look forward to supporting the continued growth and expansion of the businesses throughout Asia Pacific as part of Emergent Cold."

General details of his privately held firm, company records of which show was incorporated in Texas last June, are scarce.

According to its social media presence, Emergent Cold "is already the market leader in Australia with capacity for 320,000 pallets in more than 75 million cubic feet (22.9 million cu m) of temperature-controlled space, ranging from fully-automated high rise to traditional sites.

"The company is also a leading service provider in Vietnam, with capacity for more than 40,000 pallets in Ho Chi Minh City and Hanoi."

Until last May, Rider was founder and CEO of Agro Merchants Group, classed as the world’s fifth-largest cold chain logistics operation, for four years.

In that time, Agro became intimately acquainted with the Australian refrigerated logistics scene, picking up Brisbane-based Doboy Cold Stores in November 2016.

Before that, he was president of Americold Logistics for eight years.

For John Swire & Sons Australia chairman Geoff Cundle, his firm leaves Emergent with a national network of temperature-controlled facilities, with sites totalling more than 65 million cubic feet, or 275,000 pallet spaces of refrigerated storage utilising advanced integrated warehouse and transport technologies.

"Swire will continue to focus on growing its specialised logistics and contract mining services business, Kalari HSE, and will be seeking other investment opportunities of scale in Australia," Cundle says.

The deal is one of two substantial moves in the sector late last year, following a month after

Automotive Holdings Group (AHG) said it was selling its refrigerated logistics division to Chinese investment firm HNA Group. 

 

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