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Lineage Logistics fattens coffers again with $1.9B funding round

Cold storage provider has raised $4.3 billion since the beginning of 2020

Fresh funding will fuel portfolio expansion (Photo: Jim Allen/FreightWaves)

The largest temperature-controlled logistics provider in the world, Lineage Logistics, announced Thursday it has raised $1.9 billion in equity from various investors. Lineage plans to use the capital to fund various new developments, facility expansions and tech initiatives. The company will also use the money to remain active acquiring smaller cold storage operators.

The latest funding round adds to the $1.6 billion equity raise the company completed in September, bringing the total to $4.3 billion since the beginning of 2020.

Lineage also announced a new $2.8 billion credit facility, consisting of a revolver and a term loan.

“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.

The press release listed four recent acquisitions with facilities in five states.

In February, Lineage added 2.5 million square feet (90 million cubic feet) of capacity in Europe through a series of 12 transactions. The company also became a provider of refrigerated and insulated railcars through its acquisition of Cryo-Trans earlier in the year.

In 2020, Lineage completed 38 acquisitions, representing 128 facilities with more than 5,000 employees.

Currently, the portfolio stands at more than 2.1 billion cubic feet of storage in 340 facilities across the globe.

“I am proud to say that the company we have been building has made an incredible and transformative impact on our customers, our team members, our communities and the broader temperature-controlled industry,” said Adam Forste, co-executive chairman of Lineage and co-founder at Bay Grove.

Private equity firm Bay Grove founded and manages Lineage.

Included on the company’s largest funding round since its inception in 2008 were BentallGreenOak, D1 Capital Partners, Oxford Properties, CenterSquare Investment Management, MS Tactical Value and Conversant Capital, OP Trust and Cohen & Steers.

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Todd Maiden

Based in Richmond, VA, Todd is the finance editor at FreightWaves. Prior to joining FreightWaves, he covered the TLs, LTLs, railroads and brokers for RBC Capital Markets and BB&T Capital Markets. Todd began his career in banking and finance before moving over to transportation equity research where he provided stock recommendations for publicly traded transportation companies.