Bay Grove Genesis

Bay Grove was formed in late 2007 by Kevin Marchetti and Adam Forste and joined in 2011 by Dave Brandes. The three were former colleagues in Morgan Stanley's investment banking group who reunited after their respective tenures in institutional private equity ‐ Kevin at The Yucaipa Companies, Adam at Kohlberg Kravis Roberts & Co. (KKR), and Dave at Shorenstein Properties. 

During Bay Grove's formative period, Adam and Kevin conceived a simple vision for Bay Grove focused on several core tenets:

 
  • Create platform companies one at a time with investment lifespans measured in decades, not years

  • Build these platforms through a combination of acquisitions and organic deployment of capital

  • Develop deep domain expertise around each platform

  • Use capital and capital markets as efficiently as possible

  • Use Bay Grove's bedrock to help guide companies to outstanding results

Since late 2008, Bay Grove has executed its owner-operator vision and approach with Lineage Logistics. Currently, the team devotes all of its time to the growth and success of this platform.


Lineage Logistics

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We acquired our first frozen food warehouse in December 2008 in the heart of the financial crisis. Since then, we have made a total of 20 acquisitions to create the second largest cold storage company globally. The companies that form Lineage were built by entrepreneurs and families over decades and generations. In most cases, the owners of these companies have rolled equity into Lineage and continue to be active in the business as advisors and mentors.

Today, Lineage operates over 100 facilities in 22 states and has over 6,000 dedicated employees. Lineage serves customers across the food and perishable industries from Fortune 500 companies to growing regional food producers. The company handles and stores an assortment of products from seafood to ice cream to meats to vegetables. Lineage is also a distribution partner for some of the largest and fastest growing food retailers. Lineage's transportation division provides integrated transportation solutions to solve some of the country's most complicated supply chains. Lineage is also active in other value-added areas of the temperature-controlled supply chain. 

Since 2008, we have honed this process of buy and build with the exceptional team at Lineage and by focusing on incremental improvements that benefit our customers, culture and systems. Today, Lineage is continuing to explore new acquisitions while increasing its domestic facility footprint through organic expansions. As a result of several new hires and investments, Lineage is also developing a broader suite of logistics services to deliver more solutions to customers. 

We believe we are only in the early innings of an opportunity to build the leading temperature-controlled logistics company globally. We are attracting incredible talent to the company and implementing systems that we believe will allow Lineage to operate differently and better. Opportunities abound to connect ever-greater lengths of the supply chain and support growing demand for perishable products domestically and abroad.  

To learn more about Lineage Logistics, please visit www.lineagelogistics.com.

Investment Criteria

Bay Grove's core focus today is building the Lineage Logistics platform. We are always looking for other great companies in the cold storage industry in the U.S. and overseas to bring into the Lineage family. We are also looking at ancillary businesses to cold storage that broadly participate in the temperature-controlled logistics space.

Cold Storage Criteria

Types of Businesses

  • Preferably companies that own their own real estate and are actively engaged in servicing customers
  • Companies with customers in the food / perishable product and pharmaceutical sectors

Size Criteria

  • Facilities with greater than 100,000 sq. ft. and preferably greater than 200,000 sq. ft.
  • Companies with EBITDA of greater than $2.5 million and preferably greater than $5 million

 

Real Estate Criteria

Types of Buildings and Assets

  • Distribution facilities and cold storage buildings in strong core markets
  • Cold storage, industrial and logistics buildings with existing tenants        
  • Food production facilities with active users

Types of Transactions

  • Purchases
  • Sale-Leasebacks
  • Build-to-Suit

Size Criteria

  • Facilities with greater than 100,000 sq. ft. and preferably greater than 200,000 sq. ft.
  • Transaction values of $10 million and preferably greater than $20 million

 

Temperature-Controlled Logistics Criteria

Types of Businesses

  • Transportation brokerage (not interested in trucking companies with leased or owned assets)
  • Customs brokerage with a majority of their revenue from frozen or refrigerated cargoes
  • Freight forwarders with a majority of their revenue from frozen or refrigerated cargoes
  • Value added suppliers with a majority of their revenue from frozen or refrigerated products
  • Intermodal solution providers

Size Criteria

  • Companies with EBITDA of greater than $1 million and preferably greater than $3 million   

 

Technology-Enabled Logistics Criteria

Types of Businesses

  • Technology companies operating in the logistics industry
  • Supply chain systems and platforms
  • Resource management and optimization tools
  • Analytics and big data solutions

Size Criteria

  • Preferably revenue generating companies