Crystal Cube changes hands

by Melissa Wilson

SBJ Staff

The fry-an-egg-on-the-sidewalk summer heat hasn't melted Houston, Texas-based Packaged Ice Inc.'s enthusiasm for acquiring several privately held ice companies across the country, including Crystal Cube Ice Co., 2530 E. Livingston.

Packaged Ice Inc. announced Aug. 5 that it had closed on the acquisitions of 17 ice companies representing annual revenues of approximately $12.4 million. Crystal Cube Ice Co., Mr. Ice in Las Vegas, Space Ice in Melbourne, Fla. and Farmer's Ice serving northeastern Texas were four of 17 companies acquired, each the market leader in its respective region, according to a Packaged Ice news release.

The other 13 acquisitions are in-market transactions that complement the company's existing operations in Alabama, Florida, Georgia, Louisiana, Tennessee and Texas.

"We were pleased to have completed these acquisitions at such a highly attractive and non-dilutive purchase price multiple, and have identified numerous cost saving opportunities that, when achieved, should lower the effective purchase price further," said James F. Stuart, Packaged Ice Inc.'s chairman and chief executive officer, in the release.

Stuart added that by acquiring the 17 successful ice manufacturers, Packaged Ice enters several new markets, as well as increasing its market share in existing operating regions, positioning the company to further enhance margins.

Crystal Cube's previous owner, Hale King, said consolidation is becoming very common in the ice industry, and declined to disclose Crystal Cube's purchase price. The aggregate purchase price for the 17 companies was $15.1 million in the form of 55 percent cash and 45 percent common stock.

Packaged Ice is the largest manufacturer and distributor of packaged ice in the United States, serving more than 74,000 customer locations in 27 states and the District of Columbia.

King and his wife, who started Crystal Cube Ice Co. in 1988, sold the company to retire. King said he will stay on as plant manager "for awhile."

Crystal Cube, which King said is capable of producing 180 tons of ice per day, mainly supplies grocery stores and poultry producers within a 100-mile radius of Springfield.