Lineage Logistics Announces Acquisition of Preferred Freezer Services

Novi, MI – Lineage Logistics (“Lineage” or the “Company”), the world’s most innovative and trusted provider of temperature-controlled logistics solutions, today announced it has signed a definitive agreement to acquire Preferred Freezer Services (“Preferred”), a global network of state-of-the-art, temperature-controlled warehouses. This transaction marks a significant milestone for the temperature-controlled logistics industry. Customers will now be able to benefit from the complementary capabilities of two of the industry’s most innovative companies. Together the companies hope to set a new standard for global reach and technological advancements for their customers. Financial terms of the transaction were not disclosed.

“We are thrilled to welcome Preferred into the Lineage family of companies,” said Greg Lehmkuhl, President and Chief Executive Officer of Lineage. “Bringing their first-class management team, deep industry experience and network of strategically located facilities into our organization will enable us to provide best-in-class service offerings for customers worldwide. Lineage is now better positioned than ever to meet the needs – and exceed the expectations – of food customers on a truly global scale.”

Following the closing, the combined company will feature over 1.3 billion cubic feet of temperature-controlled capacity across over 200 facilities, with a global footprint that spans North America, Europe and Asia. At present, Lineage and Preferred have highly complementary real estate and customer bases, making their combination a strategic expansion into new markets and new service offerings.

“Joining Lineage will bring Preferred to the next level of customer service by broadening our global reach while also significantly expanding our innovation capabilities,” said John Galiher, Chief Executive Officer of Preferred. “I am tremendously proud of the company we have built and longstanding customer relationships we have fostered since founding Preferred Freezer Services in 1989. We have found the ideal partner in Lineage, and I look forward to working closely with Greg, as well as the Lineage and Bay Grove teams, to offer our expanded customer base the best services and capabilities in the industry.”

This transaction will increase Lineage’s ability to invest in next-generation technologies while making new advances using the companies’ combined intellectual property. Together, these enhanced innovation capabilities will enable Lineage to provide unparalleled operational and energy efficiency to its expanded customer base. After the combination, Lineage will have 17 automated facilities with over 800,000 automated pallet positions, including the two largest automated facilities in the world and an accelerating strategy to bring the most sophisticated automated solutions to meet ever growing customer demands and complexity.

“We have followed Preferred’s impressive growth and innovations under John’s leadership since launching Lineage and always knew that bringing these two companies together would reinforce our vision to be the most dynamic temperature-controlled company in the industry,” commented Kevin Marchetti, Co-Founder and Managing Partner of Bay Grove, the principal investment firm backing Lineage. “This transaction will equip Lineage with the global reach and innovation capabilities that will fuel the next chapter of the Company’s growth and we are excited to have them on board.”

“I’d like to thank John and the entire Preferred team for their incredible partnership,” said Peter Lamm, Managing Director of Fenway Partners, Preferred’s equity partner and owner. “Preferred has built a tremendous platform under the management team’s leadership and, on behalf of Fenway Partners, I am proud to have supported its sustained growth over the past decade. We wish both organizations great success as a combined company.”

As part of the transaction, significant new equity was committed by existing investors, Stonepeak Partners and D1 Capital Partners.

Lineage has grown rapidly through acquisitions and organic growth since its founding in 2008. The Company’s acquisition of Preferred builds on the success of its long history of successfully integrating complementary companies into its portfolio. The companies expect the transaction to close in the second quarter of 2019, subject to customary closing conditions and regulatory approvals.

Morgan Stanley & Co. LLC acted as financial advisor to Lineage in this transaction, and Latham & Watkins LLP served as legal advisor to Bay Grove and Lineage. UBS Investment Bank acted as financial advisor to Preferred, with Ropes & Gray LLP serving as legal advisor. 

Lineage Logistics Acquires UK Cold Storage, Frozen Food & Logistics Service Provider Yearsley Group

NOVI, MI – Lineage Logistics Holdings, LLC (“Lineage” or the “Company”), the world’s most innovative and trusted provider of temperature-controlled supply chain solutions, today announced it has acquired Yearsley Group Limited (“Yearsley”), a leading temperature-controlled logistics service provider and frozen food distributor in the UK. Financial terms of the transaction were not disclosed.

“Yearsley has demonstrated a strong commitment to developing longstanding, bespoke customer relationships that is consistent with how we do business at Lineage. Bringing Yearsley into the Lineage family enables us to better serve customers in the UK market and further reinforces our international logistics capabilities,” said Greg Lehmkuhl, President and Chief Executive Officer of Lineage Logistics.

“Our acquisition by Lineage is a tremendous opportunity for Yearsley customers and employees alike,” said Jonathan Baker, Chief Executive of Yearsley Group. “Lineage’s commitment to innovation and service is unmatched, and we are excited to strengthen our ability to partner and grow with customers on a global scale unlike ever before.”

“We see tremendous alignment between our two organizations, not only in our capabilities to diligently serve customers’ extended supply chains, but also in our dedication to supporting a values-based culture that empowers our growing international workforce,” Lehmkuhl adds. “Together, we are unquestionably the highest-caliber team in the cold storage space, and we are best positioned to creatively solve our customers’ most complex logistics needs.”

In its 66-year history, Yearsley has grown to become one of the most respected temperature-controlled logistics providers in the UK, operating a network of 12 cold stores nationwide. With over 300 vehicles, Yearsley complements its cold storage solutions with high-impact, value-added transportation services, following a similar model to Lineage’s US-based operations. Also included in the transaction is Yearsley Food, a national frozen food supplier that supports customers across retail, food service, food manufacturing and export channels.

Since its founding in 2008, Lineage has evolved through both acquisitions and organic growth. The Company’s acquisition of Yearsley builds on the success of its first international acquisition in 2017 in which Lineage acquired Partner Logistics, a leading automated cold storage provider in Europe.

Rabobank acted as lead financial advisor, Houlihan Lokey acted as financial advisor and Latham & Watkins LLP acted as legal counsel to Lineage Logistics. KPMG Corporate Finance acted as financial advisor and Gateley plc acted as legal counsel to Yearsley Group.

Lineage Logistics Receives $700 Million Investment From Stonepeak Infrastructure Partners, D1 Capital Partners and Current Lineage Investors

Lineage, the Industry’s Fastest-Growing Temperature-Controlled Supply Chain Company, to Use Capital to Further Expand Its Network and Services

Novi, MI - Lineage Logistics, LLC (“Lineage”), the world’s most innovative and trusted provider of temperature-controlled supply chain solutions, today announced the $700 million acquisition of a significant minority ownership interest in the company. The organizations investing in Lineage include funds managed by Stonepeak Partners LP (“Stonepeak”), an infrastructure-focused private equity firm; D1 Capital Partners, an investment fund founded by former Viking Global Investors CIO Daniel Sundheim; and current Lineage investors. Lineage is controlled and operated by Bay Grove Capital (“Bay Grove”), a San Francisco-based owner-operator dedicated to partnering with strong management teams to build exceptional businesses.

Related to these investments, Stonepeak’s Senior Managing Director Luke Taylor and Principal James Wyper will join Lineage’s Board of Directors.

“From the beginning, Lineage has been focused on reimagining the world’s food supply chain by bringing best-in-class technologies to a vital food infrastructure,” said Greg Lehmkuhl, President and CEO of Lineage. “These investors are sophisticated capital partners that share our positive long-term view of the industry and Lineage, and this investment will provide us with even more opportunities to accelerate our future innovation and growth.”

“We see significant long-term value potential in this industry and specifically at Lineage,” said Luke Taylor. “Stonepeak has been following the cold storage industry very closely for many years, and we’ve admired the tremendous success Lineage and Bay Grove have had in such a short period of time, growing from a single warehouse in 2008 to more than 100 locations across the world. We are excited to be actively partnering with Lineage and Bay Grove on the next phase of their growth and capital deployment into new facilities.”

“We are proud to have worked together with the Lineage management team to build the fastest-growing temperature-controlled supply chain company and the industry’s foremost innovator,” said Kevin Marchetti, Managing Partner at Bay Grove. “The impact Lineage has already made is remarkable, and we are excited by the future opportunities to expand and continue to advance the industry.”

Lineage Acquires Flagship Wisconsin Cold Storage Facility and Buys Portfolio of Leased SE Warehouses

Novi, MI – June 5, 2018 - Lineage Logistics, LLC ("Lineage"), the world’s most innovative and trusted provider of temperature-controlled supply chain solutions, today announced it has acquired Wisconsin-based cold storage provider, Service Cold Storage (“SCS”) as well as a portfolio of four leased cold storage warehouses in strategic markets across the Southeast. Financial terms of the transactions were not disclosed.

The acquisition of SCS establishes a flagship operation in the state of Wisconsin for Lineage and adds to the organization’s robust facility network in the Midwest. Located in Central Wisconsin’s Stevens Point, the current SCS facility is less than 5 years old and spans over 11 million cubic feet of temperature-controlled storage space. Construction on a significant expansion is underway that will bring the facility footprint to nearly 20 million cubic feet and provide more needed capacity to support customer growth.

“Lineage’s Midwest operations provide customers with unparalleled storage flexibility and access to value-added solutions, and the addition of our first Wisconsin location strengthens our ability to create efficiencies across customer supply chains,” said Greg Lehmkuhl, President & CEO of Lineage Logistics. “We are thrilled to welcome the SCS team to the Lineage family and to grow our Midwest presence.”

“We believe joining Lineage will help us to deliver ever greater value to our customers and to create more opportunities for our employees,” said SCS President & CEO Les Dobbe. “We look forward being a part of Lineage’s innovative and growing network.”

“SCS is known for its strong team, commitment to customer service and operational excellence,” said Kevin Marchetti, Managing Partner of Bay Grove, Lineage’s principal investment firm. “They are a special organization, and we are honored SCS chose to join forces with Lineage.”

The acquisition of SCS is announced on the heels of Lineage’s purchase of a portfolio of four leased cold storage facilities, located in Georgia, Louisiana, South Carolina and Virginia.

Lineage Logistics Acquires Eight Los Angeles Area Facilities from U.S. Growers Cold Storage

Novi, MI - November 28, 2017 - Lineage Logistics, LLC ("Lineage"), a leading international warehousing and logistics company backed by Bay Grove, LLC (“Bay Grove”), announced today it has acquired eight temperature-controlled warehouses from U.S. Growers Cold Storage (“Growers”). With the acquisitions, Lineage adds significant capacity to its expansive facility network in Southern California, providing increased storage flexibility and greater access to value-added solutions for its customers. Financial terms of the transactions were not disclosed.

The eight locations acquired from Growers encompass over 12 million cubic feet of capacity in the Los Angeles area and are accessible to Southern California’s major freeways, rail facilities and ocean container terminals, including the 250,000 square-foot transload facility Lineage operates in the Port of Long Beach’s overweight corridor. With the acquisition, Lineage strengthens its ability to customize high-impact supply chain solutions for customers by leveraging its expanded Southern California facility network of over 20 locations.

“While we have existing operations and deep experience in Southern California, this acquisition further represents Lineage’s commitment to grow with customers and optimize their supply chains in a desirable core market,” said Greg Lehmkuhl, President & CEO of Lineage Logistics. “Our aim has, and always will be, to consistently provide the space and solutions when and where our customers need it.”

“Lineage is a dynamic company with the sophistication and scale to deliver innovative, impactful solutions,” said Angelo Antoci, Growers President & CEO. “We are confident they will continue to provide exceptional service to our customers and great opportunities for our employees.”

“Growers is an outstanding organization with strong relationships in Southern California, and we are thrilled to welcome them to the Lineage family,” said Kevin Marchetti, Managing Partner of Bay Grove. “Angelo is an industry luminary for whom we have tremendous respect, and we are honored by the outcome of this proprietary acquisition.”

In addition to the acquisition, Lineage will continue Growers’ existing expansion plans to add over 25,000 pallet positions to its capacity over two phases. The initial phase is targeted for completion in May 2018.

The Growers acquisition and its subsequent growth plans are announced on the heels of Lineage’s acquisition of two cold storage facilities from American Cold Storage (“American”). Located in Boonville, Indiana and Louisville, Kentucky, the acquired facilities add over 8 million cubic feet of capacity to Lineage’s facility network and serve as a complement to its nearby warehouses in the Midwest region. American will continue to own its facilities in Humboldt and Jackson, Tennessee independently.

In sum, Lineage adds more than 20 million cubic feet of capacity to its international facility network through these two acquisitions.

Lineage Logistics Acquires European & United Kingdom Automated Warehouse Leader Partner Logistics

Novi, MI - June 15, 2017 - Lineage Logistics, LLC ("Lineage"), one of the world’s largest temperature-controlled warehousing and logistics companies, announced today it has acquired Partner Logistics (“Partner”), Europe’s leading cold storage provider and world’s largest automated cold storage company. The transaction marks the first international acquisition by Lineage, an organization backed by investment firm Bay Grove, LLC (“Bay Grove”), and represents significant growth in the Company’s warehouse automation strategy. Financial terms of the deal were not disclosed.

“This transaction is a great opportunity for our company and our customers,” said Duco Buijze, CEO of Partner Logistics. “We are excited to join Lineage and to increase the resources we have for growth and to expand our service offerings.”

Lineage specializes in supply chain transformation for the world’s leading food, retail and distribution brands.  Operating one of North America’s largest and most diverse warehouse networks, Lineage creates high-impact logistics solutions through value-added services including managed transportation, customs brokerage, processing and manufacturing. The Company has grown through major acquisitions and new construction since its founding in 2008, with its domestic U.S. facility footprint reaching over 100 locations and 609 million cubic feet of temperature-controlled capacity.

With the acquisition of Partner, Lineage adds over 101 million cubic feet of temperature-controlled capacity and expands its operations to include six state-of-the-art, fully automated warehouses and one conventional warehouse in the Netherlands, Belgium and the United Kingdom. Headquartered in Netherland’s Bergen op Zoom, Partner’s network of cold storage facilities has a total capacity of over 500,000 pallets and is designed to maximize the efficiency and cost effectiveness of their customers’ supply chains.

“Our acquisition of Partner Logistics represents Lineage’s ongoing commitment to serving our customers’ global supply chains by delivering dynamic, sophisticated cold chain logistics solutions,” said Greg Lehmkuhl, Lineage’s President and CEO. “We are thrilled to welcome the Partner team and are confident their incredible industry expertise, particularly in automation, will accelerate Lineage as a thought leader in this area with existing and new customers.”

The deal marks an important step in Company’s broader automation strategy, which has been in development for over three years. Earlier this year the Company announced plans to construct its first automated cold storage facility in the Dallas/Ft. Worth market and will use the acquisition of Partner as an additional platform for new automated projects in U.S. and European markets. Lineage intends to combine its existing expertise in automation with the intellectual property and best practices of Partner to further reduce product damage, enhance efficiency and improve customer experience.

“The vision of Lineage Logistics is to be the world’s most dynamic temperature-controlled logistics company, and our expansion into Europe is a significant milestone in achieving that goal,” said Adam Forste, Managing Partner of Bay Grove. “This transaction also highlights our commitment to automation as a critical pillar of our growth strategy globally.”

Lineage Logistics Acquires Consolidated Distribution Corporation

IRVINE, CA, August 18, 2016 - Lineage Logistics, LLC ("Lineage"), a warehousing and logistics company backed by Bay Grove, announced today that it has acquired Consolidated Distribution Corporation (“CDC”), a third-party logistics and re-distribution company headquartered in Lombard, Illinois. With the acquisition of CDC, Lineage becomes the largest customized re-distribution network in the U.S. Financial terms of the transaction were not disclosed.

Founded in 1990, CDC is a leading foodservice supply chain logistics company and the largest independent multi-concept re-distribution provider in the nation. Its robust re-distribution operation serves the retail and manufacturing industries, as well as the foodservice franchisors and purchasing cooperatives of the nation’s most recognizable restaurant brands. With access to multi-temperature warehouses in Illinois, Georgia and Texas, CDC also adds to Lineage’s facility network of over 600 million cubic feet across 113 facilities in 22 states, which represents the second largest refrigerated warehouse network globally based on data from the International Association of Refrigerated Warehouses (“IARW”).

“In joining Lineage, we gain access to additional capacity and service offerings like transportation, customs brokerage and High Pressure Processing (HPP) that allow us to diversify the supply chain solutions we can offer customers,” said Mitch Rader, CEO of CDC. “I am excited about our future as a part of Lineage and the opportunity to further fortify our strategic partnerships with our valued customers.”

“The vision of Lineage Logistics is to be the world’s most dynamic temperature-controlled logistics company, and welcoming CDC into the organization is an important step toward achieving that vision,” said Greg Lehmkuhl, Lineage’s President & CEO. “CDC’s re-distribution operation is a fantastic complement to our business. We are pleased to dramatically expand our re-distribution offering and help our combined customers with maximizing their total supply chains.”

Lineage Logistics Acquires Columbia Colstor

Colton, CA, January 9, 2015 - Lineage Logistics (“Lineage”), a warehousing and logistics company backed by Bay Grove, announced today that it has acquired Columbia Colstor (“Columbia”), a third-party warehousing and logistics company headquartered in Moses Lake, WA. With the acquisition of Columbia, Lineage doubles its leading presence in the Pacific Northwest to eleven locations which increases storage capacity and value-added services for its customers. Lineage’s national footprint now reaches over 600 million cubic feet across 111 facilities in 21 states, representing the second largest refrigerated warehouse network globally based on data from the International Association of Refrigerated Warehouses (“IARW”). Financial terms of the transaction were not disclosed.

Founded in 1983 by President Don McGraw, Columbia encompasses over 52 million cubic feet of temperature-controlled storage capacity which represents the 11th largest in North America according to IARW. Primarily located in Eastern Washington’s robust agricultural region, Columbia serves customers who are focused on the processing of potatoes, fruits, and other vegetables grown in the Columbia Basin as well as seafood customers near the western Washington and Oregon border.

“By joining Lineage, we can access a national network of facilities and offer additional logistics solutions that will allow our business and customers alike to continue to thrive,” said McGraw. “We see great alignment between Lineage’s dedication to providing world-class customer service and our own, and I am excited about our future as a part of Lineage.” McGraw will remain active in the combined company as an investor and advisor.

“Don and his team have demonstrated exceptional leadership, reliability, and focus on service since Columbia’s founding which has resulted in strong, long-standing relationships with its customers,” said Bill Hendricksen, CEO of Lineage. “We look forward to honoring and growing those relationships for many years to come.”

“The acquisition of Columbia—combined with the imminent Tacoma, WA facility expansion—positions Lineage as the leading cold storage provider in the Pacific Northwest with the best scale, services, and team,” said Kevin Marchetti, Managing Director of Bay Grove.

Lineage Logistics Acquires Northern California Facilities from Dreisbach Enterprises

Colton, CA, July 7, 2014 - Lineage Logistics (“Lineage”), a warehousing and logistics company backed by Bay Grove, has acquired two cold storage facilities in Santa Cruz county (CA) from Dreisbach Enterprises (“Dreisbach”). With the addition of these two operations, Lineage now operates four warehouses in the Watsonville region, creating increased storage flexibility and value-added services for its customers. Lineage’s national footprint now comprises over 550 million cubic feet across 104 facilities in 21 states, which represents the second largest refrigerated warehouse network globally based on data from the International Association of Refrigerated Warehouses. Financial terms of the transactions were not disclosed.

The acquired warehouses, Parajo and Hilltop, encompass 201,000 square feet of refrigerated storage space and offer a breadth of services, including blast freezing, to service the region’s strawberry and seafood industries. The Dreisbach operations team at these locations will join Lineage and work in conjunction with the broader Lineage Watsonville team to support customer needs in the market. Dreisbach Enterprises, under President Jason Dreisbach, will continue operating its Oakland and Richmond facilities, in addition to its logistics solutions, as a separate entity.

“We have established great customer relationships and operational familiarity in Watsonville so this acquisition to enhance local capacity aligns our goals to grow and provide more benefits to our customers,” said Kevin Marchetti, Managing Director of Bay Grove. “The Dreisbach family has been a tremendous partner and we look forward to future endeavors between our two companies.”

“This opportunity will allow Dreisbach Enterprises to strengthen our Bay Area presence and continue to expand our logistics business nationwide,” said Jason Dreisbach. “The Bay Grove and the Lineage team have been an exciting group to work with, and we are confident they will continue to provide superior service to our Watsonville customers. We believe this is just the beginning of a long and successful relationship with Lineage.”

“We would like to welcome our newest team members joining Lineage in Watsonville,” said Bill Hendricksen, CEO of Lineage. “Our Watsonville team is now greater equipped to service customers in the region, an advantage that is second to none.”

Lineage Logistics Completes the Acquisitions of Loop Cold Storage, Oneida Cold Storage, and Millard Refrigerated Services

Colton, CA, May 12, 2014 - Lineage Logistics (“Lineage”), a warehousing and logistics company backed by Bay Grove, announced today that it has completed the acquisition of Loop Cold Storage (“Loop”), Oneida Cold Storage (“Oneida”) and Millard Refrigerated Services (“Millard”), which was previously announced in March. With these three acquisitions, Lineage expands its national cold storage footprint to over 544 million cubic feet and a facility network of 102 facilities in 21 states. Financial terms of the transactions were not disclosed. 

Based in McAllen, TX, Loop has the largest cold storage operation on the U.S.-Mexico border servicing the imports of fruits and vegetables and specializing in the international produce trade. In addition to cold storage services, Loop provides value-added packaging and cooler services for produce distributors. Former owner John McGuire has joined Lineage’s management team as VP of Fresh Business to focus on developing Lineage’s fresh services segment.

Headquartered in Henderson, CO, Oneida is the largest cold storage provider in the Denver metropolitan area. At over 400,000 square feet, Oneida’s state-of-the-art facility provides customers with a variety of services including custom freezing programs, multi-temperature storage, tempering services, and retail distribution solutions.

“The addition of Millard, Loop, and Oneida represent another transformational moment for Lineage and continues our long-term strategy to build the leader in temperature controlled logistics”, said Kevin Marchetti, Managing Director of Bay Grove.

“We are thrilled to officially welcome the newest members to the Lineage family,” said Bill Hendricksen, CEO of Lineage Logistics. “We look forward to continuing our commitment to our customers by offering innovative, creative, and customizable logistics solutions as a unified organization.”