Easy Ice, a portfolio company of Freeman Spogli, has acquired Icesurance, the leasing division of Arctic Glacier, a portfolio company of the Carlyle Group.
Easy Ice is a national provider of ice machines using a subscription model. The company’s commercial ice machine subscription programs include installation, cleaning, preventive maintenance, repairs, backup ice and peak demand ice.
Easy Ice, founded in 2009 by CEO Mark Hangen and COO John Mahlmeister, is co-headquartered in Phoenix, Arizona and Marquette, Michigan, and has warehouse and distribution facilities in Chicago, Dallas, Kansas City, Orlando, New York City, and Los Angeles.
Freeman Spogli acquired Easy Ice in December 2019 and through a combination of organic growth and add-on acquisitions of ice machine leasing companies has expanded the company from 25,000 ice machines under management in 2019 to nearly 30,000 units across 47 states in 2022.
The acquisition of Icesurance increases Easy Ice’s market share in New York City and Los Angeles and is the sixth add-on for Easy Ice under Freeman Spogli’s ownership. Other recent acquisitions include the February 2022 buys of Chicago-based Biltmore Refrigeration and the Oklahoma City-based leasing division of Brooks Industries.
“After more than 45 years in business, Arctic Glacier and Icesurance have achieved extraordinary success in the commercial ice machine industry and we’re equipped to continue that legacy,” said Mr. Hangen. “With this acquisition, we have strengthened our presence in the two largest metropolitan areas in the nation with local resources that enable us to provide best-in-class service to clients in both regions.”
Arctic Glacier produces, markets, and distributes packaged ice. The company also offers bottled water, dry ice, packaged wood, rock salt, ice making, and dispensing equipment. The company, led by CEO Richard Wyckoff, operates over 100 production and distribution facilities in the United States and Canada and is headquartered near Philadelphia in Bala Cynwyd, Pennsylvania.
The Carlyle Group (NASDAQ: CG), through Carlyle Global Partners, the firm’s long-duration investment strategy, acquired Arctic Glacier from H.I.G. Capital in March 2017. The firm invests worldwide in buyouts, growth capital, real estate, and leveraged finance. Carlyle, with $293 billion of assets under management, has more than 1,800 employees in 26 offices across five continents and is based in Washington DC.
Freeman Spogli invests from $75 million to $300 million of capital per investment in North American-based middle-market consumer and distribution companies that are valued from $100 million to $750 million. Typical target companies will have EBITDA from $10 million to $75 million. Since its founding in 1983, Freeman Spogli has invested over $5.3 billion in 67 portfolio companies with an aggregate transaction value of approximately $25 billion. The firm has offices in Los Angeles and New York City.
In September 2019, Freeman Spogli closed its latest fund, FS Equity Partners VIII LP (Fund VIII), at its hard cap of $1.85 billion. Fund VIII follows the firm’s earlier fund which closed in October 2014 with capital commitments of $1.3 billion.
© 2022 Private Equity Professional | March 15, 2022
