A local ice company proved to be a hot commodity on the M&A market.
Chester-based City Ice was acquired last week by Reddy Ice, one of its main rivals. The deal was finalized Nov. 5. Financial terms were not disclosed.
The sale came as City Ice owner Mark Resnick — after more than two decades in the industry — was looking for a fresh start.
“I’ve been doing this for 23 years,” he said. “I wanted a bigger game.”
So he hired accounting firm Cherry Bekaert to do a valuation of the company. Then he brought on local investment banking firm Cary Street Partners to start shopping City Ice around.
Four potential buyers came to the table, but the deal with Reddy Ice is the one that stuck.
Mark Resnick on “Showcase Richmond.”
Going head-to-head with Reddy Ice over the years to land accounts at grocery stores, convenience stores and the like, Resnick said he saw Reddy Ice as the big bad competitor.
But he liked what he saw as discussions heated up.
“Ten years ago, I would have said ‘never,’” he said of selling to Reddy Ice. “Five years ago, I would have said ‘never.’ But it’s a whole different company.”
He cited a major shift in the company’s management as a factor in his conversion.
“With them pretty much convincing me that they would care for both my customers and my employees in the manner which I would care for both, it made them the most likely partner to merge with,” Resnick said.
City Ice was founded in Petersburg in 1903, back when people needed big blocks of ice to cool early versions of refrigerators.
Resnick bought the company from previous owner Vince Ferranti in 1990 after a career in restaurant and grocery store equipment manufacturing.
In the late 1990s, Resnick moved City Ice to a plant just off Old Hundred Road that can crank out 65 tons of ice per day.
At its peak, it was churning out millions of pounds of ice each year for customers including Ukrop’s, Wawa, Whole Foods and Pitstop convenience stores.
As the sale process progressed, Resnick scaled the business down to about 14 employees.
Now that the sale has closed, Resnick said he’s helping Reddy Ice with the transition. He’s not sure how long that role will continue.
As he plots his next course, Resnick says he plans to stay in Richmond. He still has City Ice’s facility at 13600 Permilla Springs Dr. to deal with. The 20,000-square-foot building and its seven acres weren’t included in the deal with Reddy Ice, as that company has its own operations near the airport.
But leaving behind 23 years as an ice man won’t be easy.
“I have to find a new identity, a new purpose at this point if I’m going to go out of the industry,” Resnick said. “Now I’m just this big, tall, graying, balding man.”
“I don’t know. I’m open for anything right now.”
A local ice company proved to be a hot commodity on the M&A market.
Chester-based City Ice was acquired last week by Reddy Ice, one of its main rivals. The deal was finalized Nov. 5. Financial terms were not disclosed.
The sale came as City Ice owner Mark Resnick — after more than two decades in the industry — was looking for a fresh start.
“I’ve been doing this for 23 years,” he said. “I wanted a bigger game.”
So he hired accounting firm Cherry Bekaert to do a valuation of the company. Then he brought on local investment banking firm Cary Street Partners to start shopping City Ice around.
Four potential buyers came to the table, but the deal with Reddy Ice is the one that stuck.
Mark Resnick on “Showcase Richmond.”
Going head-to-head with Reddy Ice over the years to land accounts at grocery stores, convenience stores and the like, Resnick said he saw Reddy Ice as the big bad competitor.
But he liked what he saw as discussions heated up.
“Ten years ago, I would have said ‘never,’” he said of selling to Reddy Ice. “Five years ago, I would have said ‘never.’ But it’s a whole different company.”
He cited a major shift in the company’s management as a factor in his conversion.
“With them pretty much convincing me that they would care for both my customers and my employees in the manner which I would care for both, it made them the most likely partner to merge with,” Resnick said.
City Ice was founded in Petersburg in 1903, back when people needed big blocks of ice to cool early versions of refrigerators.
Resnick bought the company from previous owner Vince Ferranti in 1990 after a career in restaurant and grocery store equipment manufacturing.
In the late 1990s, Resnick moved City Ice to a plant just off Old Hundred Road that can crank out 65 tons of ice per day.
At its peak, it was churning out millions of pounds of ice each year for customers including Ukrop’s, Wawa, Whole Foods and Pitstop convenience stores.
As the sale process progressed, Resnick scaled the business down to about 14 employees.
Now that the sale has closed, Resnick said he’s helping Reddy Ice with the transition. He’s not sure how long that role will continue.
As he plots his next course, Resnick says he plans to stay in Richmond. He still has City Ice’s facility at 13600 Permilla Springs Dr. to deal with. The 20,000-square-foot building and its seven acres weren’t included in the deal with Reddy Ice, as that company has its own operations near the airport.
But leaving behind 23 years as an ice man won’t be easy.
“I have to find a new identity, a new purpose at this point if I’m going to go out of the industry,” Resnick said. “Now I’m just this big, tall, graying, balding man.”
“I don’t know. I’m open for anything right now.”