Reddy Ice (NYSE: FRZ) distributes about 1.9 million tons of ice every year. According to the company: "Wherever there is a need for ice, from the picnic cooler to the wedding ice sculpture; from major league sports events to fishing fleets; from holiday parties to areas affected by disaster, Reddy Ice has ice products to fill the need."But it will now do so as a private company. This week, Reddy Ice agreed to a $1.1 billion buyout. The suitor is GSO Capital Partners and the debt financing will come from Morgan Stanley (NYSE: MS).
Reddy Ice also provided revised guidance for 2007. Basically, the terrible weather is having an adverse impact on the company – such as in Texas and Oklahoma.
The company expects revenue of $350-$360 million and net income of $16.3-$20.4 million. As for adjusted EBITDA, it is forecasted at $90-$95 million.
On the news of the deal, the stock price increased 6.86% to $30.48. The buyout price is $31.25 per share.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
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