Lineage Logistics Broadens Scandinavian Footprint Through Acquisition of Port-Centric Norwegian Property

The acquisition represents Lineage’s continued focus on growth in the greater Scandinavian region

The acquisition was led by Bay Grove Capital (“Bay Grove”), Lineage’s owner-operator

Novi, MI – Lineage Logistics, LLC (“Lineage” or the “Company”), the world’s largest and most innovative temperature-controlled industrial Real Estate Investment Trust (“REIT”), and logistics solutions provider, today announced the acquisition of Teglverksveien 47-49 (“Teglverksveien”), a port-centric property in Norway which features a newly-built modern cold storage and freezer building. Commercial real estate adviser, CBRE (NYSE:CBRE) represented the buyer and served as the transaction broker. Terms of the deal were not disclosed. 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.

The Teglverksveien property, located outside Oslo, Norway’s capital and largest city, totals over 14,000 square meters of capacity. The facility represents Lineage’s first investment in Norway and serves the central Eastern Norway cold-storage market. Similar to other properties that Lineage owns as a REIT, this facility is leased to a third-party operator.

“As the first US-based cold-storage logistics organization to enter Norway, we’re thrilled to grow our footprint in Scandinavia and make this first investment in Norway. We hope to continue to grow in greater Scandinavia and offer cold-storage services to our customers in this critical geography,” said Mike McClendon, Lineage’s President of International Operations & EVP of Network Optimization. “Our strategic expansion in Europe centers around providing our customers with best-in-class solutions in locations that make the greatest impact.”

The Teglverksveien property is located in the Drammen municipality, which lies 40 kilometres (25 mi) from Oslo and is in close proximity to the Drammen Port that offers both a rail terminus and a seaport, making it a strategic real estate investment.

“This acquisition highlights the continued expansion of our net-leased real estate portfolio with well-located cold-storage properties and our growth as a global industrial REIT focused on temperature controlled warehouses,” said Adam Forste, Co-Executive Chairman of Lineage and Co-Founder and Managing Partner at Bay Grove, which led the acquisition. “Properties like Teglverksveien represent high-quality real estate which are well-positioned for future supply-chain growth. The Norwegian CBRE team played a vital role in introducing the opportunity and facilitating the process resulting in a successful transaction.”

The acquisition contributes to the strategic expansion of Lineage’s facility network across Europe. Following the close of this transaction, the combined Company will feature a global footprint that spans over 1.9 billion cubic feet of temperature-controlled capacity across over 320 facilities in 14 countries spanning North America, Europe, Asia, Australia, New Zealand, and South America.

“We are thrilled to have completed a successful transaction with Lineage. Both parties were able to consummate a seamless, efficient transaction, even in the challenging circumstances presented by COVID-19,” says Axel Folkvard Partner at Oslo Finans, a Norwegian syndicator who acquires and manages Real Estate on behalf of HNW (High Net Worth) individuals.

This acquisition follows the Company’s announced entry into the Nordic region through the acquisition of Kanalholmen 15 (“Kanalholmen”), a large, net-leased cold storage facility located in the industrial area of Avedøre Holme in Hvidovre.

About Lineage Logistics

Lineage is the world’s largest and most innovative provider of temperature-controlled logistics solutions. Lineage’s expertise in end-to-end logistical solutions, its unrivaled real estate network, and its use of technology combine to promote food safety, increase distribution efficiency, advance sustainability, lessen environmental impact, and minimize supply chain waste. As a result, Lineage helps customers ranging from Fortune 500 companies to small family-owned businesses increase the efficiency and protect the integrity of their temperature-controlled supply chain. Lineage has grown its cubic feet by 60% annually since 2008 to 1.9 billion cubic feet, making it the largest global temperature-controlled industrial REIT. In recognition of the company’s leading innovations, Lineage was recognized as the No 1. Data Science company on Fast Company’s Annual list of The World’s Most Innovative Companies in 2019, in addition to ranking 23rd overall in an evaluation of thousands of companies worldwide. (www.lineagelogistics.com)

About Bay Grove
Bay Grove is a principal investment firm dedicated to partnering with strong management teams to invest in and build long-term platform investments. Since 2008, Bay Grove has built Lineage Logistics through acquisitions and investments completed in partnership with entrepreneurs, customers and employees. The firm has deep experience in the warehousing and logistics industry and also seeks to make investments in other attractive sectors. Bay Grove is based in San Francisco. (www.bay-grove.com)

Lineage Logistics Raises $1.6 Billion in New Equity to Drive Business Growth and Support Further Investment in Technology and Automation

Company to use funds to pursue additional new acquisitions and organic expansions to provide added value to customers around the globe

Investors include Oxford Properties, BentallGreenOak, D1 Capital Partners, Cohen & Steers, OPTrust, CenterSquare Investment Management, Morgan Stanley Tactical Value, among others

Oxford Properties Group President Michael Turner to join Lineage’s Board of Directors

Company to name new Board Observers, including BentallGreenOak’s John Carrafiell and SOHO China’s Zhang Xin

Novi, MI – Lineage Logistics, LLC (“Lineage” or the “Company”), the world’s largest and most innovative temperature-controlled industrial REIT and logistics solutions provider, today announced it has raised $1.6 billion in equity from new and existing strategic partners. Participating investors include Oxford Properties Group (“Oxford Properties”), BentallGreenOak, D1 Capital Partners, Cohen & Steers, OPTrust, CenterSquare Investment Management, and investment funds managed by Morgan Stanley Tactical Value, among others.

“This significant investment -- from both new and existing investors -- is validation of our business model, our innovative strategy and our plans to continue expanding our footprint as the world’s largest temperature-controlled warehousing and logistics company,” said Greg Lehmkuhl, President and CEO of Lineage. “As we reimagine the food supply chain and execute on our company purpose to eliminate waste and help feed the world, we remain focused on driving value for our more than 5,000 customers by operating globally and deploying industry-changing technologies to create efficiencies across our 320 facilities.”

During 2020, Lineage has announced 16 acquisitions and executed on 15 new expansions and greenfield facilities. The Company also continues to develop a number of the world’s most advanced fully automated warehouses that will reduce environmental intensity, while providing flexible and expansive capacity for customers during a period where the global pandemic is putting acute strain on the global food supply chain. New capital will fuel these increasingly large investments.  

“Since the company’s founding in 2008, we have been on a mission to transform the food chain by building a global platform, fueling it with advanced technologies and putting in place a world-class leadership team to lead this industry,” said Adam Forste, Co-Executive Chairman of Lineage and Co-Founder and Managing Partner at Bay Grove, which founded and manages Lineage Logistics. “From the acquisition of our first warehouse, we have been able to build Lineage by having great investors -- this capital raise adds an incredible group of new strategic partners and board participants that will further accelerate our ability to grow and innovate.”

In conjunction with this capital raise, Oxford Properties’ President, Michael Turner, will join Lineage’s Board of Directors, bringing with him decades of commercial real estate experience. Oxford is a leading global investor, developer and manager of commercial real estate with approximately $60 billion in assets under management. Operating across four continents, Oxford’s portfolio spans over 100 million square feet across both global gateway cities and high-growth hubs where it invests in properties, portfolios, development sites, debt, securities and platforms across the risk-reward spectrum.

“Over recent years, Oxford has substantially increased our exposure to logistics real estate by selectively investing in a series of best-in-class operators across the globe, and Lineage represents the premier operator in cold storage sector,” said Oxford Properties’ President Michael Turner. “I look forward to working with the Lineage management team and the rest of the Board, which has transformed the Company into the global market leader. Our investment demonstrates our confidence in the team, the platform it has built and Lineage’s growth opportunities.”

The Company also announced new Board Observers, each with extensive real estate investment experience, including John Carrafiell, a Founder & Senior Managing Partner of real estate investment management and advisory firm BentallGreenOak, and Zhang Xin, CEO SOHO China, one of China’s largest and best known commercial property developers.

Morgan Stanley and Eastdil Secured acted as placement agents, and Latham & Watkins, LLP served as legal counsel for Lineage.

Lineage Logistics Announces Acquisition of Henningsen Cold Storage Co.

Acquisition adds to Lineage’s expansive U.S. network with the addition of 14 facilities and bolsters its leading presence in the Pacific Northwest

Acquisition amplifies Lineage’s existing presence in Oregon, Washington and Pennsylvania, and marks the Company’s entrance into Idaho, North Dakota and Oklahoma

Novi, MI – Lineage Logistics, LLC (“Lineage” or the “Company”), the world’s largest and most innovative provider of temperature-controlled logistics solutions, today announced it has signed a definitive agreement to acquire Henningsen Cold Storage Co. (“Henningsen”). Lineage was founded by and continues to be managed by Bay Grove. The strategic acquisition adds to the Company’s expansive U.S. facility network and bolsters its leading presence in the Pacific Northwest, with the addition of 14 facilities across Oregon, Washington, Idaho, Pennsylvania, North Dakota and Oklahoma. Financial terms of the transactions were not disclosed.

“We are honored to welcome the Henningsen team to the Lineage family and to serve our combined customer bases across additional points in their food supply chains,” said Greg Lehmkuhl, President and Chief Executive Officer of Lineage. “Our organizations share a commitment to excellence, doing business with integrity and finding sustainable ways to run our businesses, and I look forward to seeing how our strong operational and cultural foundations will propel us into the future.”

Following closing of this transaction and pending the close of a previously announced transaction, the combined Company will feature over 1.9 billion cubic feet of temperature-controlled capacity across 311 facilities in 11 countries, with a global footprint that spans North America, Europe, Asia, Australia and New Zealand.

Henningsen Cold Storage Co., which was founded in 1923 by Waldemar F. Henningsen, Sr., originally operated under the name “Northwestern Ice & Cold Storage Inc.,” and stands today as a fifth-generation family business with a legacy of reliability and long-standing, excellent relationships with customers.

“We have known the Henningsen family since our earliest days in the cold chain industry and have deep respect for the business, culture and reputation they have built over generations,” said Kevin Marchetti, Co-Founder of Lineage Logistics and Bay Grove. “When we founded Lineage a little over eleven years ago, we looked to emulate companies like Henningsen that built their company with a long-term mindset. With this transaction, we will bring together two companies with that type of approach and make them both even stronger together.”

“On behalf of the entire Henningsen family, we are thrilled to be joining Lineage,” said Paul Henningsen, President of Henningsen Cold Storage Co.  “We chose Lineage because we believe it will be the best way to strengthen our partnerships with customers by providing access to an unrivaled international facility network, extensive technology and automation resources as well as a robust suite of supply chain solutions. I am incredibly proud of our organization and the customer and employee centric reputation we have built over many years. I’d like to thank the entire Henningsen team for their continued efforts and dedication to our business, and I can’t wait to see what the future holds for us as part of Lineage.”

The transaction is expected to close in the coming months, subject to customary closing conditions.

Credit Suisse is acting as financial advisor to Lineage. Latham & Watkins is acting as legal advisor to Lineage.

BofA Securities is acting as exclusive financial advisor to Henningsen. Schwabe, Williamson & Wyatt is acting as legal advisor to Henningsen.

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About Henningsen Cold Storage Co.

Henningsen is a professionally managed, multi-generational family owned company that is committed to delivering quality, reliable service and solutions to make lives easier for its customers and associates.  Henningsen’s commitment also extends to leading the industry in associate and food safety, energy efficiency, and refrigeration technologies.  Henningsen has received numerous awards and recognition from industry including Mass Mutual’s National Family Business of the Year Award. (www.henningsen.com)

Lineage Logistics Acquires QSR and Casual Dining Distribution Business from Maines Paper & Food Service

Maines’ QSR and Casual Dining distribution customers, including Burger King, Tim Hortons and Darden Restaurants to benefit from Lineage®’s end-to-end supply chain capabilities and world-leading warehouse network

Acquisition saves more than 850 U.S. jobs and ensures continuity within the food supply chain in the midst of the pandemic

Acquisition further expands Lineage’s service offerings to customers with last mile distribution and adds leading U.S. restaurant brands into the Lineage network

Novi, MI – Lineage Logistics (“Lineage” or the “Company”), the world’s largest and most innovative provider of temperature-controlled logistics solutions, today announced it has acquired the assets of Maines Paper & Food Service, Inc. (“Maines”), one of the leading foodservice distributors in the U.S.

To bolster its end-to-end supply chain solutions in the quick serve restaurant (“QSR”) and casual dining hospitality segments, Lineage acquired the last mile food service distribution assets of Maines, which primarily supports Burger King, Tim Hortons and Darden Restaurants. This division, which encompasses a sophisticated warehousing and transportation network across seven states, serves over 2,500 brand restaurants including Burger King, Tim Hortons, Olive Garden, Longhorn Steakhouse, Cheddar’s Scratch Kitchen and The Capital Grille.

“To complete this acquisition in the midst of a worldwide pandemic while the nation is facing economic headwinds is extraordinary, but we continue to bet on America and are thrilled to further support our front line heroes in the food supply chain, like those at Lineage and Maines,” said Greg Lehmkuhl, Lineage’s President & CEO. “We look forward to the opportunity to step up and help our customers stabilize their supply chain, preserve hundreds of jobs for hardworking Maines employees and ensure we continue to feed the world.”

“Maines has served as a key distributor of America’s foodservice community over the last century, and today’s news ensures our QSR and casual dining distribution business can continue to operate and service our customers for years to come as part of one of the best food supply chain networks in the world,” said Chris Mellon, President & CEO of Maines. “In Lineage, we’ve found a great partner with a stellar track record of doing business the right way and a reputation of taking care of its people, customers and communities.”

“Restaurant Services, Inc. (“RSI”) and Burger King have a longstanding relationship with Lineage and has familiarity with their suppliers and business partners, many of whom we are already working with. I am confident that this step to further integrate with Lineage will create significant value for RSI, our suppliers, and the Burger King restaurants we serve,” said RSI President & CEO, Joel Neikirk.

This transaction builds on Lineage’s extensive temperature-controlled logistics network, which includes over 50 million square feet and 1.8 billion cubic feet of temperature-controlled capacity across more than 290 facilities in 11 countries across North America, Europe, and the Asia-Pacific.

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About Maines Paper & Food Service

Maines Paper & Food Service, Inc. is one of the largest independent foodservice distributors in the country with a 100-year history of helping restaurant owners and managers maximize the performance. For more information log onto www.maines.net.
 

About Restaurant Services, Inc.

Restaurant Services, Inc. (RSI), at www.rsiweb.com, is the supply chain manager for the BURGER KING® system and the exclusive purchasing agent for the vast majority of products and distribution services used by RSI's members – BURGER KING® restaurant owners in the United States.

Lineage Owners Honored by Goldman Sachs for Entrepreneurship

Kevin Marchetti and Adam Forste of Bay Grove Capital Named Among 100 Most Intriguing Entrepreneurs of 2019 at Goldman Sachs’ Annual Builders + Innovators Summit

San Francisco, CA – Bay Grove Capital (“Bay Grove”), a San Francisco-based owner-operator dedicated to partnering with strong management teams to build exceptional businesses, today announced that its co-founders and co-managing partners, Kevin Marchetti and Adam Forste, were selected by Goldman Sachs (NYSE:GS) as among the 100 Most Intriguing Entrepreneurs of 2019 at the Goldman Sachs Builders + Innovators Summit in Santa Barbara, California.

Mr. Marchetti and Mr. Forste were recognized by Goldman Sachs at the three-day event alongside fellow entrepreneurs from across multiple industries.

Bay Grove controls and operates Lineage Logistics, LLC (“Lineage”), the world’s largest and most innovative provider of temperature-controlled logistics solutions. Starting with just one warehouse in 2008, Bay Grove quickly scaled Lineage through nearly 40 acquisitions to create the industry’s highest-quality and best-positioned network of temperature-controlled real estate, with over 1.4 billion cubic feet of temperature-controlled capacity and 40 million square feet of real estate over 200+ facilities across North America, Europe and Asia.

“We started Bay Grove in 2007 with a simple vision – to create a true owner-operator model, building platform companies one at a time when investment lifespans were measured in decades, not years.” said Kevin Marchetti, Co-Founder and Co-Managing Partner of Bay Grove. “At Bay Grove, we devote all of our time to the growth and success of the Lineage platform, using our industry knowledge and experience to create an industry leader that is reimagining the food supply chain to eliminate food waste and help feed the world by ensuring that food travels from farm to fork safely.”

Lineage deploys technology and applied sciences to accelerate value and efficiency in the temperature-controlled supply chain by solving the complexities of storing, moving and preserving food safely and efficiently around the globe. Lineage boasts 17 facilities with automation, including the two largest automated temperature-controlled facilities in the world.  

“It is a great honor to be recognized as leading entrepreneurs by Goldman Sachs, but we couldn’t have done it alone; we are extremely fortunate to have Lineage’s talented management team as our partners, and we look forward to continuing the rapid growth and innovation we’ve achieved together,” added Adam Forste, Co-Founder and Co-Managing Partner of Bay Grove. “Every day we come to work looking forward to finding exceptional team members to help us achieve our goals and the next great cold storage company -- in the U.S. or overseas -- to bring into the Lineage family.”

"True innovation is built from a diversity of perspectives and experiences", said David M. Solomon, Chief Executive Officer of Goldman Sachs. "Our Builders + Innovators Summit brings together a collective of impressive future leaders who are striving to drive meaningful change. For 150 years, Goldman Sachs has supported entrepreneurs as they launch and grow their businesses. That’s why we are pleased to recognize Bay Grove’s Kevin Marchetti and Adam Forste as two of the most intriguing entrepreneurs of 2019."

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About Kevin Marchetti

Mr. Marchetti is a co-Founder and Managing Partner of Bay Grove where he is active in all day-to-day activities of the firm and responsible for investment decisions. He is Co-Executive Chairman of the board of Lineage Logistics Holdings, LLC, the largest temperature-controlled warehousing and logistics company globally. Prior to co-founding Bay Grove, Mr. Marchetti was an investor with Ron Burkle and The Yucaipa Companies where he helped invest the Yucaipa Funds and eventually oversaw Mr. Burkle’s personal investment portfolio and sat on the board of the Pittsburgh Penguins. Mr. Marchetti started his career with Morgan Stanley in its investment banking group.  He graduated cum laude from Duke University with a major in Economics and a minor in History. Mr. Marchetti is on the board of Nevada Dental Benefits, the San Francisco Zoological Society and Fisher Center’s Real Estate Policy Advisory Board at UC Berkeley.

About Adam Forste

Mr. Forste is a co-Founder and Managing Partner of Bay Grove where he is active in all day-to-day activities of the firm and responsible for investment decisions. He is Co-Executive Chairman of the board of Lineage Logistics Holdings, LLC, the largest temperature-controlled warehousing and logistics company globally and is on the board of the World Food Logistics Organization (WFLO). He is also a board member of ndustrial.io, a SAAS-based energy management company. Prior to Bay Grove, Mr. Forste worked at Kohlberg Kravis Roberts & Co. (“KKR”), one of the world’s oldest and most experienced global private equity firms. While at KKR, Mr. Forste executed power-related transactions valued over $7.7 billion and evaluated deals in the energy, retail, and consumer industries. Mr. Forste started his career with Morgan Stanley in its investment banking groups, both in New York and San Francisco, where he focused on M&A and covering financial sponsors. Mr. Forste is a Fulbright Fellow and a graduate of Dartmouth College.

About Bay Grove

Bay Grove is a principal investment firm dedicated to partnering with strong management teams to invest in and build long-term platform investments. Since 2008, Bay Grove has built Lineage Logistics through acquisitions and investments completed in partnership with entrepreneurs, customers and employees. The firm has deep experience in the warehousing and logistics industry and also seeks to make investments in other attractive sectors. Bay Grove is based in San Francisco. (www.bay-grove.com)

About Lineage Logistics

Lineage is the industry’s leading innovator in temperature-controlled supply chain and logistics. Lineage’s expertise in end-to-end logistical solutions, its unrivaled real estate network, and its use of technology combine to promote food safety, increase distribution efficiency, advance sustainability, lessen environmental impact, and minimize supply chain waste. As a result, Lineage helps customers ranging from Fortune 500 companies to small family-owned businesses increase the efficiency and protect the integrity of their temperature-controlled supply chain.  In recognition of the company’s leading innovations, Lineage was recognized as the No 1. Data Science company on Fast Company’s Annual list of The World’s Most Innovative Companies in 2019, in addition to ranking 23rd overall in an evaluation of thousands of companies worldwide. (www.lineagelogistics.com)

Media Contacts:

BAY GROVE

Lizzy Shay Kaler

415.299.6584

lizzy@bay-grove.com

LINEAGE LOGISTICS

Megan Hendricksen                                                                                        

949.247.5172                                                                                                   

mhendricksen@lineagelogistics.com

Lineage Announces Acquisition of Emergent Cold, Expands U.S. Port Network and Strategic Presence in Asia-Pacific Market

Acquisition expands Lineage Logistics’ strategic presence into key new markets within the Asia-Pacific region; transaction furthers Lineage’s international leadership position, adding 46 facilities in the United States, Australia, New Zealand, Vietnam and Sri Lanka

Novi, MI – Lineage Logistics Holdings, LLC (“Lineage” or the “Company”), the world’s largest and most innovative provider of temperature-controlled logistics solutions, today announced it has signed definitive agreements to acquire Emergent Cold (“Emergent”). This acquisition strengthens the Company’s leading port presence in the United States and signifies its entry into the Australian, New Zealand, and Sri Lankan temperature-controlled logistics markets, building on Lineage’s existing presence in the Asia-Pacific region. Financial terms of the transactions were not disclosed.

“Food producers, manufacturers and retailers are looking for cold chain partners who can offer a dynamic and truly end-to-end temperature-controlled logistics solution, and one that can reach every corner of the world,” said Greg Lehmkuhl, President and Chief Executive Officer of Lineage. “Welcoming Emergent to the Lineage family not only adds significant capacity to our international footprint, but also deepens our commitment to our port strategy and international trade. We are better able to help customers respond to constantly shifting market dynamics, such as global network optimization, tariff impacts, consumer preference shifts, and much more, while at the same time unlocking new potential market opportunities to sell their goods.”

Following closing of the transactions, the combined Company will feature over 1.7 billion cubic feet of temperature-controlled capacity across 260 facilities in 10 countries, with a global footprint that now spans North America, Europe, Asia, Australia and New Zealand. With the acquisition, Lineage adds a newly constructed distribution center in the Dallas-Fort Worth market as well as four U.S. port facilities in New Orleans, Houston and Charleston to its expansive network of locations supporting import, export and customs brokerage services for its customers. The transaction also includes the purchase of real estate at select facility sites currently leased by Emergent under long-term lease agreements.

Emergent, which was founded in 2017 by Elliott Management and Neal Rider, brings to Lineage an experienced management team with a proven track record of growth and longstanding relationships with customers in global markets.

“Joining Lineage accelerates our goal of providing the highest quality global cold chain solutions to our customers,” said Neal Rider, Emergent’s founder and Chief Executive Officer.  “Lineage has established itself as a leader in our industry, and expanding its global footprint and port presence with the addition of Emergent will create incredible opportunities for our collective customers. I also want to thank Elliott Management for believing in and backing us when Emergent Cold was just an idea, and our Executive Chairman Chris Jamroz for his tireless leadership and support. Their partnership, support and expertise has been critical in driving Emergent’s success, and we are looking forward to the next chapter with Bay Grove and Lineage.”

“We partnered with Neal because we saw a compelling opportunity to support his vision for building a globally significant cold storage company,” said Cody Kittle, Associate Portfolio Manager at Elliott Management. “In less than two years, we were able to acquire seven high-performing businesses and launch two greenfield facilities across six countries and four continents, while driving significant top and bottom line improvement across our operations. We congratulate Neal, the Emergent team and Lineage, who we think is a well-suited partner for Emergent. We are looking forward to remaining equity holders in the combined entity.”

“As an innovative leader in global cold storage, we look forward to making Emergent part of the Lineage team,” said Chris Jamroz, Emergent’s Executive Chairman.

“We have been following Emergent’s impressive growth trajectory and have a long-standing respect for their management team. We’re excited to bring their capabilities, relationships and growth pipeline into our organization,” said Kevin Marchetti, Co-Founder and Managing Partner of Bay Grove, the principal investment firm backing Lineage. “Together, our teams are committed to strengthening our important relationships with customers by leveraging our expansive network and applying innovative solutions to their most pressing challenges.”

The transactions also position Lineage to take advantage of growing demand for cold storage space in Australia – a sector valued at $5 billion – and in neighboring New Zealand, Vietnam and Sri Lanka. The sector is rapidly evolving and is an integral part of Asia-Pacific’s domestic and international supply chains for food products including dairy, seafood, raw and cooked meat, poultry, frozen vegetables and other frozen or chilled foods. Once the deal closes, Lineage will be poised to help customers meet growing export demand and their need for a more expansive supply chain.

Since its founding in 2008, Lineage has expanded rapidly by acquiring best-in-class cold storage companies, deploying capital into new projects and growing the business organically. The Company’s acquisition of Emergent builds on its past successes in integrating complementary companies into its portfolio.

Latham & Watkins LLP served as legal advisor to Bay Grove and Lineage in this transaction. Debevoise & Plimpton LLP served as legal advisor to Emergent.

The transactions are expected to close in 2020, subject to customary closing conditions and regulatory approvals.

Lineage Owners Honored by Goldman Sachs for Entrepreneurship

Kevin Marchetti and Adam Forste of Bay Grove Capital Named Among 100 Most Intriguing Entrepreneurs of 2019 at Goldman Sachs’ Annual Builders + Innovators Summit

San Francisco, CA – Bay Grove Capital (“Bay Grove”), a San Francisco-based owner-operator dedicated to partnering with strong management teams to build exceptional businesses, today announced that its co-founders and co-managing partners, Kevin Marchetti and Adam Forste, were selected by Goldman Sachs (NYSE:GS) as among the 100 Most Intriguing Entrepreneurs of 2019 at the Goldman Sachs Builders + Innovators Summit in Santa Barbara, California.

Mr. Marchetti and Mr. Forste were recognized by Goldman Sachs at the three-day event alongside fellow entrepreneurs from across multiple industries.

Bay Grove controls and operates Lineage Logistics, LLC (“Lineage”), the world’s largest and most innovative provider of temperature-controlled logistics solutions. Starting with just one warehouse in 2008, Bay Grove quickly scaled Lineage through nearly 40 acquisitions to create the industry’s highest-quality and best-positioned network of temperature-controlled real estate, with over 1.4 billion cubic feet of temperature-controlled capacity and 40 million square feet of real estate over 200+ facilities across North America, Europe and Asia.

“We started Bay Grove in 2007 with a simple vision – to create a true owner-operator model, building platform companies one at a time when investment lifespans were measured in decades, not years.” said Kevin Marchetti, Co-Founder and Co-Managing Partner of Bay Grove. “At Bay Grove, we devote all of our time to the growth and success of the Lineage platform, using our industry knowledge and experience to create an industry leader that is reimagining the food supply chain to eliminate food waste and help feed the world by ensuring that food travels from farm to fork safely.”

Lineage deploys technology and applied sciences to accelerate value and efficiency in the temperature-controlled supply chain by solving the complexities of storing, moving and preserving food safely and efficiently around the globe. Lineage boasts 17 facilities with automation, including the two largest automated temperature-controlled facilities in the world.  

“It is a great honor to be recognized as leading entrepreneurs by Goldman Sachs, but we couldn’t have done it alone; we are extremely fortunate to have Lineage’s talented management team as our partners, and we look forward to continuing the rapid growth and innovation we’ve achieved together,” added Adam Forste, Co-Founder and Co-Managing Partner of Bay Grove. “Every day we come to work looking forward to finding exceptional team members to help us achieve our goals and the next great cold storage company -- in the U.S. or overseas -- to bring into the Lineage family.”

"True innovation is built from a diversity of perspectives and experiences", said David M. Solomon, Chief Executive Officer of Goldman Sachs. "Our Builders + Innovators Summit brings together a collective of impressive future leaders who are striving to drive meaningful change. For 150 years, Goldman Sachs has supported entrepreneurs as they launch and grow their businesses. That’s why we are pleased to recognize Bay Grove’s Kevin Marchetti and Adam Forste as two of the most intriguing entrepreneurs of 2019."

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About Kevin Marchetti

Mr. Marchetti is a co-Founder and Managing Partner of Bay Grove where he is active in all day-to-day activities of the firm and responsible for investment decisions. He is Co-Executive Chairman of the board of Lineage Logistics Holdings, LLC, the largest temperature-controlled warehousing and logistics company globally. Prior to co-founding Bay Grove, Mr. Marchetti was an investor with Ron Burkle and The Yucaipa Companies where he helped invest the Yucaipa Funds and eventually oversaw Mr. Burkle’s personal investment portfolio and sat on the board of the Pittsburgh Penguins. Mr. Marchetti started his career with Morgan Stanley in its investment banking group.  He graduated cum laude from Duke University with a major in Economics and a minor in History. Mr. Marchetti is on the board of Nevada Dental Benefits, the San Francisco Zoological Society and Fisher Center’s Real Estate Policy Advisory Board at UC Berkeley.

About Adam Forste

Mr. Forste is a co-Founder and Managing Partner of Bay Grove where he is active in all day-to-day activities of the firm and responsible for investment decisions. He is Co-Executive Chairman of the board of Lineage Logistics Holdings, LLC, the largest temperature-controlled warehousing and logistics company globally and is on the board of the World Food Logistics Organization (WFLO). He is also a board member of ndustrial.io, a SAAS-based energy management company. Prior to Bay Grove, Mr. Forste worked at Kohlberg Kravis Roberts & Co. (“KKR”), one of the world’s oldest and most experienced global private equity firms. While at KKR, Mr. Forste executed power-related transactions valued over $7.7 billion and evaluated deals in the energy, retail, and consumer industries. Mr. Forste started his career with Morgan Stanley in its investment banking groups, both in New York and San Francisco, where he focused on M&A and covering financial sponsors. Mr. Forste is a Fulbright Fellow and a graduate of Dartmouth College.

About Bay Grove

Bay Grove is a principal investment firm dedicated to partnering with strong management teams to invest in and build long-term platform investments. Since 2008, Bay Grove has built Lineage Logistics through acquisitions and investments completed in partnership with entrepreneurs, customers and employees. The firm has deep experience in the warehousing and logistics industry and also seeks to make investments in other attractive sectors. Bay Grove is based in San Francisco. (www.bay-grove.com)

Lineage Logistics Further Expands Global Presence with Strategic Acquisition in Europe

Acquisition of two Van Soest Coldstores facilities in the Netherlands and Belgium adds to Lineage’s rapidly expanding European footprint

Novi, MI – Lineage Logistics, LLC, the world’s largest and most innovative provider of temperature-controlled logistics solutions, today announced as part of its global expansion efforts that it has acquired two facilities from Van Soest Coldstores (“Van Soest”), a Netherlands-based organization specializing in the storage and transfer of cooled and deep-frozen food products. Financial terms of the transaction were not disclosed. 

Under the terms of the agreement, Lineage acquired Van Soest’s facilities in Venlo, Netherlands, and Rijkevorsel, Belgium, to complement the Company’s existing presence in both countries.  Van Soest’s facility in Gamaren, Netherlands, a joint-venture and newly formed business, was not part of the transaction.  

“Part of our strategy is to grow the Lineage facility network in strategic locations to provide our customers with best-in-class solutions that meet all of their cold storage and logistics needs. Bringing Van Soest Coldstores into the Lineage family helps us do just that,” said Greg Lehmkuhl, President and Chief Executive Officer of Lineage Logistics.   

“We have found a strong European partner in Van Soest Coldstores, whose management shares our values and our drive to lead the cold storage industry. Anton Mauritz and his team have built an impressive business through their commitment to customer service, and we are excited to uphold their stellar reputation by supporting their expansion of the Rijkevorsel facility this fall,” said Mike McClendon, President, Lineage Europe and EVP, Network Optimization & Integration of Lineage Logistics.

The acquisition will add more than 10MM cubic feet and more than 300,000 square feet of storage capacity to Lineage’s portfolio after current expansions are completed, bringing Lineage’s total European cold storage capacity to nearly 200MM cubic feet across 23 facilities in England, Scotland, Belgium and the Netherlands. 

“Over our 35-year history, Van Soest has become a trusted partner to many of Europe’s leading food manufacturers. We decided to join the Lineage family because of the Company’s impressive track record of building lasting relationships based on mutual respect with family businesses like Van Soest. I am proud to be a part of the Lineage network and look forward to helping the Company continue to grow as a strategic advisor,” said Anton Mauritz, Managing Director, Van Soest Coldstores.

Since the Company’s founding in 2008, Lineage has achieved sustained growth organically, through new construction and with acquisitions in the US and across the globe. This transaction builds on Lineage’s multiple successful acquisitions in Europe, including Yearsley Group, the leading temperature-controlled logistics service provider and frozen food distributor in the UK, and Partner Logistics, a leading automated cold storage provider in Europe. Most recently, Lineage completed the acquisition of US-based Preferred Freezer Services, which enhanced the Company’s presence in the U.S. and provided a new market entrance for the Company in Asia. Lineage globally now has over 1.4 billion cubic feet and nearly 40 million square feet of capacity across more than 200 facilities spanning North America, Europe and Asia to support customer supply chain needs worldwide.

Lineage Logistics Closes Acquisition of Preferred Freezer Services

Novi, MI – Lineage Logistics, LLC (“Lineage” or the “Company”), the world’s most innovative and trusted provider of temperature-controlled logistics solutions, today announced it has closed the acquisition of Preferred Freezer Services, LLC (“Preferred”).  

The acquisition was first announced on February 25, 2019.

The combined company now features the largest temperature-controlled facility network globally with over 1.3 billion cubic feet and 37 million square feet of capacity across more than 200 facilities spanning North America, Europe and Asia to support customer supply chain needs worldwide. Lineage continues its leadership in automated warehousing with the acquisition of Preferred, now totaling over 800,000 automated pallet positions across 17 facilities, including the two largest automated temperature-controlled facilities in the world.

“With the integration of Preferred’s exceptional team and its network of state-of-the-art facilities, Lineage is the clear go-to logistics partner for both large and small food producers and retailers worldwide,” said Greg Lehmkuhl, President and Chief Executive Officer of Lineage. “Together, we look forward to delivering operational excellence and innovative, high-impact supply chain solutions for customers on a global scale.”

“Since founding Lineage in 2008, we have been focused on strategically growing the business to meet expanding customer needs,” added Kevin Marchetti, Co-Founder and Managing Partner of Bay Grove, LLC (“Bay Grove”), the principal investment firm backing Lineage. “The close of this transaction unlocks an entirely new set of opportunities as we look to build upon our industry-leading position with additional capital deployment in technological advancements and new projects.”

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.