Blackstone to Lead Cloverleaf Recapitalization

Wells Fargo Securities served as financial advisor and Katten Muchin Rosenman LLP served as legal advisor for the cold storage warehousing and food logistics company during the transaction.

David Kestnbaum, a managing director at Blackstone
David Kestnbaum, managing director at Blackstone

Cloverleaf Cold Storage has entered into a definitive agreement to recapitalize the company. Private equity funds affiliated with Blackstone will make a majority equity investment into Cloverleaf alongside the existing family shareholders, who will continue to operate the business post-closing. 

“At Cloverleaf, we are focused on building our business for the long-term, continuing to deliver our customers best-in-class service and supporting our communities,” said Daniel Kaplan, co-president of Cloverleaf, in prepared remarks. “Our partnership with a world-class firm such as Blackstone provides us with significant capital and operating resources to invest for growth and continue to expand our platform. The Feiges and Kaplan families are very pleased to be working with Blackstone as we begin the next chapter of our growth story.”

Investment Opportunity 

Cloverleaf operates a network of 19 warehouses across the U.S. providing a variety of food grade storage, handling and freezing services. Its Farmers Produce division offers value-added processing and logistics services to the protein industry. 

Wells Fargo Securities served as financial advisor and Katten Muchin Rosenman LLP served as legal advisor for Cloverleaf during the transaction. Barclays and Goldman Sachs served as financial advisors to Blackstone and Kirkland & Ellis LLP and Simpson Thacher & Bartlett LLP served as legal advisors. Debt financing for the recapitalization was also provided by Goldman Sachs.

 

“We are pleased to invest significant capital into Cloverleaf to assist the company’s existing shareholders and management team in continuing to build a market leading platform within the cold storage industry, which has been a strategic industry we have prioritized for investment,” said David Kestnbaum, managing director at Blackstone, in prepared remarks. 

In August, Blackstone entered into an agreement to acquire Harvest Fund Advisors LLC, an independent investment management firm with more than $10 billion in assets under management. 

Images courtesy of Cloverleaf and Blackstone