Activist investor pushes Americold to revamp strategy

Company Overview - Americold has entered a cooperation agreement with Ancora Group Holdings, adding two board members and establishing a new finance committee to oversee shareholder value initiatives [1] - The board size has increased to 11 directors, with plans to reduce it by one seat at the 2026 annual meeting [3] Board Appointments - Joseph Reece and Stephen Sleigh have been appointed to the board and will serve on the finance committee, with Reece also joining the investment committee and Sleigh on the audit committee [2] Financial Strategy - The finance committee will review the company's portfolio for potential sales or divestitures, focus on reducing debt, and maintain dividends [3] - Americold's net debt burden stands at $4.1 billion, with a net debt-to-last 12 month's core EBITDA ratio of 6.7 times as of the end of the third quarter [4] Financial Performance - Americold has recorded net losses of $26 million in the first three quarters of the year, following losses of $94 million in 2024 and $336 million in 2023 [4] - Adjusted funds from operations (AFFO) were $420 million and $352 million in the prior-year periods, with $300 million so far in 2025 [4] Industry Context - The temperature-controlled real estate market is facing challenges due to inflated food costs and a post-pandemic supply overhang, with competitors indicating the market is nearly 10% overbuilt [5] - New warehouse deliveries are expected to increase by 4% this year but will slow to 1.5% next year, which may help occupancy rates rebound [5] Credit Agreement - Americold has amended a credit agreement to provide a new $250 million unsecured line, intended to repay approximately $200 million in notes due next month [6]