Igneo Infrastructure Partners is finalising a deal to acquire German pharmaceutical cold storage logistics company Frigo-Trans in a deal that would mark the investor’s entrance into the sector.

Sources said that Igneo, advised by DC Advisory on the purchase, is looking to put pen to paper and announce the deal next week.

Frigo-Trans owns a fleet of over 130 cold storage truck trailers, called Pharma-Liners, as well as 45 tractor units used to haul them and more than a dozen refrigerated trucks for smaller distances. It also has three storage facilities in Germany and one in Greece, with a total capacity of over 35,000 square meters.

The company’s recent EBITDA has been in the EUR 25 to EUR 30m range, sources said.

EBITDA multiples in the cold storage sector have historically ranged from the teens to the 20s, suggesting a valuation of over EUR 250m for Frigo-Trans and possibly over EUR 600m.

Frigo-Trans was founded in 1988 by Walter Bucholz, with Peter Norheimer joining him in 1994 as managing director and co-partner, before the company’s management was taken over by Reiner Roß and Martin Krasinski in early 2019.

The deal with Igneo comes after Frigo-Trans’ owners ran a restricted auction process earlier this year, working with Lazard as their advisor.

Igneo has been actively looking for opportunities to expand its asset base in recent months.

Last week, the infrastructure investor won the auction for Portuguese motorway operator Autoestradas do Douro Litoral (AEDL), while it is also considering bidding for German industrial park operator Infraserv Höchst.

The investment in Frigo-Trans is the first for Igneo in this sector, which has been heavily targeted recently by infrastructure mainly, thanks to its business model based on long-term contracts.

The need for cold storage for pharmaceuticals in particular has increased in recent years following the coronavirus pandemic and the transportation of vaccines worldwide.

Earlier in the summer, Arcus Infrastructure Partners sold its European cold storage business Constellation Cold Logistics to EQT Infrastructure.

French truck leasing company Fraikin, whose fleet includes refrigerated vehicles, is also on the market, with Apollo Global Management among the investors vying for it.

DC and Igneo declined to comment, while Lazard and Frigo-Trans did not respond to a request for comment.