SCI Capital Partners LP Receives $1.6 Billion Investment from Apollo Funds to Facilitate Structured Continuation Vehicle
SCI Capital Partners LP has closed a $1.6 billion structured continuation vehicle transaction with Apollo Funds (NYSE: APO) to support the growth of Morton Salt and Reddy Ice. SCI will maintain control of both companies while benefiting from Apollo's strategic support and expertise. The transaction includes participation from new institutional investors, with SCI legacy investors and company management teams remaining significant investors.
Morton Salt is the largest pure-play salt company globally, while Reddy Ice is the largest packaged ice manufacturer in the United States. Reddy Ice recently made its first international acquisition of Aguafría, the largest ice manufacturer in Mexico. The partnership aims to execute long-term strategic operating plans and pursue organic and inorganic value creation initiatives for both companies.
SCI Capital Partners LP ha concluso una transazione di veicolo di continuazione strutturato da 1,6 miliardi di dollari con Apollo Funds (NYSE: APO) per sostenere la crescita di Morton Salt e Reddy Ice. SCI manterrà il controllo di entrambe le aziende beneficiando del supporto strategico e dell'esperienza di Apollo. La transazione include la partecipazione di nuovi investitori istituzionali, mentre gli investitori storici di SCI e i team di gestione delle aziende rimarranno investitori significativi.
Morton Salt è la più grande azienda a ciclo chiuso di sale a livello globale, mentre Reddy Ice è il principale produttore di ghiaccio confezionato negli Stati Uniti. Reddy Ice ha recentemente effettuato la sua prima acquisizione internazionale di Aguafría, il più grande produttore di ghiaccio in Messico. La partnership mira a realizzare piani operativi strategici a lungo termine e a perseguire iniziative di creazione di valore sia organiche che inorganiche per entrambe le aziende.
SCI Capital Partners LP ha cerrado una transacción de vehículo de continuación estructurado de 1.6 mil millones de dólares con Apollo Funds (NYSE: APO) para apoyar el crecimiento de Morton Salt y Reddy Ice. SCI mantendrá el control de ambas empresas mientras se beneficia del apoyo estratégico y la experiencia de Apollo. La transacción incluye la participación de nuevos inversores institucionales, y los inversores históricos de SCI y los equipos de gestión de las empresas seguirán siendo inversores significativos.
Morton Salt es la mayor empresa de sal pura del mundo, mientras que Reddy Ice es el mayor fabricante de hielo empaquetado en los Estados Unidos. Reddy Ice ha realizado recientemente su primera adquisición internacional de Aguafría, el mayor fabricante de hielo en México. La asociación busca ejecutar planes operativos estratégicos a largo plazo y perseguir iniciativas de creación de valor, tanto orgánicas como inorgánicas, para ambas empresas.
SCI Capital Partners LP는 16억 달러 규모의 구조적 지속 가능성 거래를 Apollo Funds (NYSE: APO)와 체결하여 Morton Salt와 Reddy Ice의 성장을 지원합니다. SCI는 Apollo의 전략적 지원과 전문성의 혜택을 누리면서 두 회사의 통제권을 유지할 것입니다. 이 거래에는 새로운 기관 투자자의 참여가 포함되며, SCI의 기존 투자자와 회사 경영진은 여전히 중요한 투자자로 남아 있습니다.
Morton Salt는 전 세계에서 가장 큰 순수 소금 회사이며, Reddy Ice는 미국에서 가장 큰 포장 얼음 제조업체입니다. Reddy Ice는 최근 멕시코에서 가장 큰 얼음 제조업체인 Aguafría를 첫 국제 인수하였습니다. 이 파트너십은 장기 전략 운영 계획을 실행하고 두 회사 모두에게 유기적 및 비유기적 가치 창출 이니셔티브를 추구하는 것을 목표로 하고 있습니다.
SCI Capital Partners LP a conclu une transaction de véhicule de continuation structuré de 1,6 milliard de dollars avec Apollo Funds (NYSE: APO) pour soutenir la croissance de Morton Salt et Reddy Ice. SCI conservera le contrôle des deux entreprises tout en bénéficiant du soutien stratégique et de l'expertise d'Apollo. La transaction inclut la participation de nouveaux investisseurs institutionnels, tandis que les investisseurs historiques de SCI et les équipes de direction des entreprises resteront des investisseurs significatifs.
Morton Salt est la plus grande entreprise de sel au monde, tandis que Reddy Ice est le plus grand fabricant de glace emballée aux États-Unis. Reddy Ice a récemment réalisé sa première acquisition internationale d'Aguafría, le plus grand fabricant de glace au Mexique. Le partenariat vise à exécuter des plans opérationnels stratégiques à long terme et à poursuivre des initiatives de création de valeur organiques et inorganiques pour les deux entreprises.
SCI Capital Partners LP hat eine Transaktion eines strukturierten Fortführungsträgers im Wert von 1,6 Milliarden US-Dollar mit Apollo Funds (NYSE: APO) abgeschlossen, um das Wachstum von Morton Salt und Reddy Ice zu unterstützen. SCI wird die Kontrolle über beide Unternehmen behalten und gleichzeitig von Apollos strategischer Unterstützung und Fachwissen profitieren. Die Transaktion beinhaltet die Teilnahme neuer institutioneller Investoren, während die Altinvestoren von SCI und das Management der Unternehmen weiterhin bedeutende Investoren bleiben.
Morton Salt ist das größte reine Salzunternehmen weltweit, während Reddy Ice der größte Hersteller von verpacktem Eis in den Vereinigten Staaten ist. Reddy Ice hat kürzlich seine erste internationale Akquisition von Aguafría, dem größten Eishersteller in Mexiko, getätigt. Die Partnerschaft zielt darauf ab, langfristige strategische Betriebspläne umzusetzen und sowohl organische als auch anorganische Wertschöpfungsinitiativen für beide Unternehmen voranzutreiben.
- SCI Capital Partners secured a $1.6 billion investment from Apollo Funds
- SCI maintains control of Morton Salt and Reddy Ice while gaining strategic support from Apollo
- Reddy Ice expanded internationally with the acquisition of Aguafría in Mexico
- The transaction attracted new institutional investors
- None.
Insights
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For Apollo investors, this deal represents a calculated risk with potential for substantial returns. Morton Salt's global leadership in the salt industry and Reddy Ice's dominant position in the U.S. packaged ice market offer stable cash flows and growth opportunities. The recent international expansion of Reddy Ice into Mexico further diversifies its revenue streams.
The transaction structure, combining Apollo's anchor investment with a syndicate of new institutional investors, spreads risk while potentially enhancing returns. This approach aligns with Apollo's strategy of leveraging its platform to create value in mature industries. Investors should monitor how this partnership influences the operational performance and growth trajectories of Morton Salt and Reddy Ice in the coming years.
This deal highlights a growing trend in private equity: the use of continuation vehicles to extend holding periods for valuable assets. For SCI, this structure allows them to retain control and upside potential in Morton Salt and Reddy Ice while providing liquidity options for existing investors.
The involvement of Apollo, a major player with
Investors should note the potential for synergies between Apollo's expertise and these established brands. The partnership could lead to operational improvements, market expansion and possibly future M&A activity. However, it's important to monitor how this complex ownership structure affects decision-making and whether it can deliver the anticipated value creation for all stakeholders involved.
Apollo Funds anchored the transaction with support from a high-quality syndicate of new institutional investors. SCI continues to control both companies while benefitting from the strategic support, sector and operational expertise of the Apollo platform. SCI legacy investors and company management teams remain significant investors.
Morton Salt is the largest pure-play salt company globally, with a 175-year operating history and leading positions across end markets and salt categories, as well as a diverse and brand-loyal customer base. Reddy Ice is the largest packaged ice manufacturer in
SCI Managing Partner, Adam Cohn said: "We look forward to working with the Apollo team and accessing their institutional expertise, while also continuing to work with the Morton Salt and Reddy Ice management teams to execute on their long-term strategic operating plans. We thank the SCI legacy investors for their continued support."
Apollo Partners Veena Isaac and Justin Korval said, "We are pleased to partner with SCI and deliver a scaled, highly aligned capital solution that provides benefits to all parties. We believe that Morton Salt and Reddy Ice represent iconic industrial and consumer-facing assets that are well-positioned for long-term growth, and we look forward to working with SCI and company management to pursue both organic and inorganic value creation initiatives. Our ability to structure, anchor and bring new institutional investors into the continuation vehicle demonstrates our creative, partnership-oriented approach, as well as the strength and connectivity of Apollo's integrated platform."
PJT Partners served as financial advisor, Gibson Dunn served as legal counsel and Ernst & Young served as tax advisor to SCI. UBS Investment Bank served as financial advisor and Proskauer Rose LLP served as legal counsel to the Apollo Funds.
About SCI Capital Partners LP
SCI Capital Partners LP ("SCI") is an investment advisory firm, focused on market-leading companies that operate in essential industries and provide mission-critical products and services to customers around the world. SCI seeks to build out industrial companies, in stable and mature industries, that possess favorable economic dynamics with high barriers to entry and within fragmented industries poised to create or strengthen a market leader through consolidation. For more information, please visit www.scicp.com.
About Apollo
Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of June 30, 2024, Apollo had approximately
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SOURCE SCI Capital Partners LP
FAQ
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