RE: Americold Realty Trust (COLD)
Could COLD be a take Private Deal? It's selling 40% BELOW it's 2019-2022 avg price of $38/share. Burkle only need 34.5% of the outstanding shares.
Soho House Holdings, Ltd. (NYSE: SHCO) another one of Burkle's companies announced yesterday they will take private this company
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I did a deep dive on COLD and found some interesting info:
COLD's Ownership: Ronald W. Burkle (through Yucaipa Companies) already holds a massive ~65.48% controlling stake.
Info on Yucaipa Companies
Ronald W. Burkle's Yucaipa Companies is a private equity firm with a history spanning decades, known for its strategic investments, particularly in the retail, food & grocery, logistics, distribution, and hospitality sectors. Unlike public companies, private equity firms do not publicly disclose their entire portfolio with specific valuations. However, we can build a picture based on their historical activities and public statements.
The Yucaipa Companies' Investment Philosophy:
Founded in 1986, Yucaipa's strategy involves:
- Leveraged Buyouts (LBOs): Acquiring companies using a significant amount of borrowed money, with the expectation of improving their performance and selling them for a profit.
- Industry Consolidation: Buying up multiple smaller players in a fragmented industry to create a larger, more efficient entity. This was particularly evident in their supermarket acquisitions.
- Growth Capital: Providing funding for companies with strong growth potential.
- Turnaround Investments: Investing in distressed companies with the aim of restoring them to profitability.
- Operational Improvements: Actively working with management teams to strategically reposition businesses and enhance operations.
Key Sectors and Notable (Past & Present) Investments:
1. Food & Grocery: This is arguably Yucaipa's most prominent area of investment. * Supermarket Chains: They were instrumental in consolidating the West Coast grocery market in the 1990s. * Ralphs Grocery Co.: Acquired for $1.5 billion in 1994, with Alpha Beta and Boys Markets later rebranded as Ralphs. * Food 4 Less: Acquired in 1987. * Dominick's: Acquired in 1995 for $750 million, later sold to Safeway for $1.85 billion in 1998. * Fred Meyer: Ralphs/Food 4 Less merged with Fred Meyer in 1997, which was then sold to Kroger for $13.5 billion in 1998. * Pathmark Stores / A&P (The Great Atlantic & Pacific Tea Company): Yucaipa acquired significant stakes and was involved in restructurings, including A&P's acquisition of Pathmark. (Both A&P and Pathmark have since gone through bankruptcies and liquidations). * Fresh & Easy: Acquired the struggling U.S. chain from Tesco in 2014. * Cold Storage / Logistics (Americold Realty Trust - COLD): This is a direct extension of their food and grocery interests, providing the critical infrastructure for temperature-controlled supply chains. Ronald Burkle's significant, long-standing stake in COLD (currently ~65.48%) underscores its strategic importance to his overall investment thesis.
2. Logistics & Distribution: * TDS Logistics: Acquired in 2004, a provider of logistics services to the automotive industry. This showcased Yucaipa's comfort with broader logistics beyond just grocery. * ProduceOnline.com: An early investment in a B2B e-commerce platform for the produce industry, highlighting their interest in optimizing supply chains through technology.
3. Retail & Consumer: * Barnes & Noble (BKS): Yucaipa had a significant stake and was involved in proxy battles, aiming to influence the company's direction, particularly during the "e-reader wars" with Amazon. (Their stake was later divested to Yucaipa investors). * Barneys New York: Acquired a stake in the luxury retailer in 2012.
4. Hospitality & Entertainment: * Soho House Holdings, Ltd. (SHCO): Ronald Burkle serves as Chairman of the Board. This is a public company operating members-only clubs and restaurants worldwide. (His direct ownership in SHCO appears to be around 200,000 shares valued at ~$1.76 million, but Yucaipa's broader involvement would be through its funds). * The Ned: A luxury hotel in London, also associated with Soho House. * Morgans Hotel Group (MHGC): Yucaipa had director and significant owner roles. (Information on current value/ownership is dated, suggesting past divestment). * Music & Live Events: Investments in European film/TV agencies (Independent Talent Group), music agencies (Artist Group International, Paradigm Agency UK, X-Ray Touring), and music festival operators (Danny Wimmer Presents, Primavera Sound). * Sports: Ronald Burkle is co-owner of the NHL's Pittsburgh Penguins with Mario Lemieux. Yucaipa has also invested in sports agencies like Independent Sports & Entertainment. * APA: A major investment in this American talent agency was made in 2020.
5. Technology & Venture Capital: * A-Grade Investments: A venture capital firm co-founded by Burkle with Ashton Kutcher and Guy Oseary, investing in tech startups like Airbnb, Uber, Spotify, and Warby Parker.
Estimated Value of Assets/Properties Owned:
It is extremely difficult, if not impossible, to provide a precise, current, and comprehensive estimated value of all assets owned by Yucaipa Companies. Here's why:
- Private Nature: As a private equity firm, Yucaipa is not obligated to disclose its portfolio holdings or their valuations publicly.
- Dynamic Portfolio: Investments are constantly being made, divested, and restructured. What they owned five years ago may be completely different today.
- "Completed Mergers & Acquisitions Valued at more than $40 Billion": This is a historical aggregate of transactions. It does not represent their current AUM or the value of their current portfolio. A firm's AUM is typically much lower than the historical value of deals it has completed, as companies are bought and sold.
- SEC Filings (Limited Insight): While Ronald Burkle's individual public company holdings (like his current ~65% in COLD, or past stakes in Barnes & Noble, Soho House) are disclosed via SEC filings (Form 4, 13D/G), these only represent his direct beneficial ownership in public companies and do not encompass the vast private portfolio of Yucaipa's funds.
Based on an SEC filing from late 2018, Yucaipa Master Manager, LLC (a Yucaipa affiliate) reported approximately $2.67 billion of assets under management as of March 2018. This gives a dated snapshot of their managed funds, but their overall "control" and influence, especially with the COLD stake, would be higher.
Given their history of multi-billion dollar deals and current controlling stake in a $4.2 billion public company (COLD), it's safe to say their total Assets Under Management (AUM) and assets owned/controlled are in the multiple billions of dollars, likely in the high single-digit billions at a minimum, possibly approaching or exceeding $10 billion, though this is an informed estimate rather than a precise figure.
In summary, Yucaipa's portfolio reflects Ronald Burkle's long-standing strategic focus on the consumer, retail, and supply chain sectors, with cold storage (COLD) being a perfect fit for their expertise and long-term investment horizon.
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Recent Developments w/ one of their companies Soho House Holdings, Ltd. (NYSE: SHCO)
Yesterday 8/18/2025
Soho House Holdings, Ltd. (NYSE: SHCO) has announced a definitive agreement to be taken private in a transaction valued at approximately $2.7 billion. The deal is led by MCR Hotels, the third-largest hotel owner-operator in the U.S., and involves a consortium of strategic investors, including Apollo Global Management and Goldman Sachs Alternatives. Actor and tech investor Ashton Kutcher will also join the board following the transaction’s completion.
Key details:
- Shareholders will receive $9.00 per share in cash, which represents a premium to recent share prices.
- Major existing shareholders such as Ron Burkle (and Yucaipa Companies), Nick Jones (founder), Richard Caring, and Goldman Sachs will roll over the majority of their stakes, retaining controlling interest in the company.
- MCR and CEO Tyler Morse will acquire the publicly traded shares not already held by these controlling investors, with Morse stepping in as vice chairman of the board.
- Apollo is backing the transaction with a combination of debt and equity, and the transaction is also supported with new capital from Goldman Sachs Alternatives.
- The deal requires regulatory clearance and shareholder approval, with closing expected by the end of 2025, at which point Soho House will be delisted from the New York Stock Exchange.
There had been previous buyout offers and activist pressure for a sale, notably from Daniel Loeb’s Third Point hedge fund. The premium offered is substantial compared to the pre-announcement stock price, but below Soho House’s IPO valuation.
In summary, Soho House Holdings is set to go private by the end of 2025 through a $2.7 billion buyout led by MCR Hotels and backed by prominent institutional and private investors.
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