Canadian ice firm buying Union

first_imgUnion Ice has annual revenues of about $10 million and is the second-largest ice maker in the state. It was started in 1882 and has been in Van Nuys since 1923. Union Ice recently moved its Commerce headquarters to a new plant in Vernon. Its Van Nuys facility has created snow scenes for “Click,” starring Adam Sandler, and “In Her Shoes,” with Cameron Diaz, said branch manager Pete De Grandis. Recently, it made 160 tons of snow for an episode of “ER” that depicted an urban street blanketed in the fluffy white stuff. The purchases make Glacier the top packaged ice company on the West Coast. Analysts said the latest acquisition is part of Glacier’s growth strategy. In the past decade the company has snapped up more than 60 ice makers. “Arctic Glacier buys companies because in essence the ice business tends to be very much like a utility,” said analyst Gareth Tingling of National Bank Financial. Ice can be delivered up to about 150 miles before it melts so companies need customers and plants to expand. Union Ice, which helps chill Los Angeles and creates snow scenes for Hollywood, is now part of Arctic Glacier, a Canadian conglomerate. Officials declined to disclose terms of the deal on Tuesday. The purchase follows a $190 million buyout of California Ice, six Northern California companies that formed the state’s largest ice manufacturer. Glacier recently purchased Mountain Water Ice Co. in Carson and Oceanside. “This was the logical next extension,” said Glacier president and chief executive officer Keith McMahon. He said he does not expect any significant change in the number of jobs at the Van Nuys plant. Glacier’s revenues boomed 65 percent in the fourth quarter, largely due to the purchases, according to Thomson One Analytics. Glacier is one of three major players in the industry, along with Reddy Ice in Dallas and Home City Ice in Ohio. Glacier’s annual revenues are about $225 million. Adding Union Ice to the fold will help Glacier smooth out its revenue stream, which tends to fall in winter. Its territory covers southern Canada, the northern U.S., and now, California. “In California we see higher gross margins for bagged ice than in more northernly areas,” said analyst Greg Colman of Wellington West Cm. [email protected] (818) 713-3735 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!last_img

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