Lineage Logistics heralds $1.9 billion in new equity funding round

Novi, Mich.-based Lineage Logistics, the largest global temperature-controlled industrial REIT and logistics services provider, said today that it has raised $1.9 billion in equity from new and existing strategic partners, which brings the total equity it has raised, going back to 2020, to $4.3 billion.

Lineage said this represents its largest funding round going back to the company’s inception in 2008. Investors involved in this round include: BentallGreenOak, D1 Capital Partners, Oxford Properties, CenterSquare Investment Management, MS Tactical Value and Conversant Capital, OP Trust, Cohen & Steers, among others.

“We set out to raise capital to support Lineage's investments in the world's most state-of-the-art technology and automation, greenfield developments, facility expansions, and continued acquisitions, and we were met with overwhelming demand from some of the most well-respected global institutional investors,” said Greg Lehmkuhl, President and CEO of Lineage, in a statement. “This is clear validation of our business model and our consistent, successful strategy to optimize our customers' temperature-controlled supply chains, which is exactly how we intend to deploy the funds—to bolster our customers' experiences from every angle and prove ourselves as their most valuable partner.”

Lineage officials said that the company will leverage this round of new equity for various efforts, including: global greenfield developments, facility expansions, M&A activity and technology innovations to turbocharge end-to-end supply chain efficiency for customers.

The company also noted that a significant portion of the $1.9 billion of new capital will be used to: “double down on new and disruptive technologies to design the temperature-controlled warehouse of the future. Tapping its award-winning team of data scientists and technologists, the Company is developing widespread algorithmic programming and automation software to streamline its operations and optimize every movement within its warehouses. Lineage—which has 13 patents and a track record of technological innovations—also announced earlier this year the launch of Lineage Link, a fully-integrated customer experience platform which provides unprecedented visibility and collaboration across its customers' supply chains.”

Lineage has been very active on the acquisition front over the years.

In January, it acquired Reisterstown, Md.-based Cryo-Trans, the leading provider of refrigerated and insulated railcars and rail management solutions, in what it called an “industry first partnership” focused on establishing a comprehensive and seamlessly integrated supply chain solution for food and beverage shippers. Lineage did not disclose financial terms of the acquisition, but a Bloomberg report noted that the transaction values Cryo-Trans at more than $500 million.

Lineage said that Cryo-Trans manages more than 40,000 annual rail shipments and owns more than 2,200 refrigerated and insulated railcars, which comprise the largest private fleet of its kind in North America. And going back to when Cryo-Trans designed its first temperature-controlled railcar in 1985, it has collaborated with customers to develop sustainable and cost-efficient long-haul rail transportation solutions, as well as leverage its proprietary rail management programs to become a trusted rail management partner, and provide real-time information and visibility used to track, trace, and expedite railcar shipments throughout North America.

A Lineage Logistics spokesman told LM, at the time of this deal, that this move into rail is part of the company’s effort to be a one-stop-shop for its customers and to eliminate waste within the supply chain.

“We are constantly working to provide added value to customers and given roughly 90% of Cryo-Trans customers are part of Lineage’s network, we saw great alignment,” he said.

And in November 2019, it acquired inked a definitive agreement to acquire Dallas-based Emergent Cold a leading cold chain services and temperature-controlled services provider, which closed in June 2020.

Lineage officials said that this deal will augment its leading United States port presence, as well as highlight the company’s entrance into the Australian, New Zealand, and Sri Lankan temperature-controlled logistics markets and leverage the company’s existing presence in the Asia-Pacific region. 

What’s more, Lineage previously announced various domestic acquisitions, including: Dick Cold Storage, including three locations in the Greater Columbus, OH area; a new strategic warehouse in Lyndhurst, VA; Great Lakes Cold Storage, including two locations in Solon, OH and Cranberry Township, PA; Win Chill Cold Storage, including one location in Sioux Falls, South Dakota; and Joliet Cold Storage, including two locations in Bolingbrook, IL and Joliet, IL.    

Lineage said it has completed or has pending construction focused on funding greenfield development and facility expansion projects in the U.S. and abroad in the following markets: Charleston, South Carolina; Logan Township, New Jersey; New Orleans, Louisiana; Portsmouth, Virginia; Sioux Falls, South Dakota; Stevens Point, Wisconsin; Aarhus (Denmark); Gdansk (Poland); Hanoi (Vietnam); Heywood (United Kingdom); Peterborough (United Kingdom); and Tauranga (New Zealand).