The market for cold storage is heating up as the largest players in temperature-controlled stores move deeper into global food supply chains.
Lineage Logistics LLC, the world’s largest space-based refrigeration storage company, has raised $ 1.9 billion in a funding round that will help it get additional property back, build new facilities and development of warehouse automation technology, the company said Thursday.
The tour brings Lineage’s valuation to about $ 18 billion, according to someone familiar with the matter. Partners include real estate investor BentallGreenOak, hedge fund D1 Capital Partners and Oxford Properties Group, which helped develop the Hudson Yards center in Manhattan.
Linei, based in Mich., Which is controlled by San Francisco-based investment firm Bay Grove, has raised a total of $ 4.3 billion in equity since January 2020.
Over that time the coronavirus pandemic disrupted food supply chains and accelerated acceptance of online grocery purchases, spurring increased demand for cold storage facilities.
“There are more investments in more places. That’s one of the best things about a cold chain, ”said Lineage CEO Greg Lehmkuhl.
Consumers are buying more fresh, frozen foods to prepare at home. Mr Lehmkuhl said he also plans a pent-up demand for eating out to drive more volumes through restaurant and food service supply chains as more people get the vaccine. “We are already seeing higher order patterns to provide for the solution,” he said.
The funding comes as Lineage and rival Americold Realty Trust Inc., Inc.
the only publicly-owned cold storage property investment trust, has been on an expansion spree, sculpting smaller operators to gain a share in a highly dispersed global market.
Atlanta-based Americold closed on $ 2.6 billion of purchases last year, entering a $ 1.74 billion contract for Agro Merchants Group, then the fourth largest refrigeration museum supplier worldwide. Americold generated $ 1.99 billion in revenue in 2020, up 11.4% from the previous year.
Lineage completed 38 purchases last year, adding temperature-controlled capacity across 11 countries and also purchasing Cryo-Trans, a cooling rail operator.
Americold controls about 5.6% of the global market compared to Lineage’s 7%, according to a capacity rating by the International Association of Frozen Museums. “We both have a lot of space in this market,” Mr Lehmkuhl said.
The company also plans to acquire more operators and establish new premises in key markets in the U.S., Europe and Asia, including near port areas, where there is potential for a cooling warehouse. has been scarce due to imbalance in marine vessels.
Lineage is developing warehouse technology incorporating software aimed at controlling lifts and conveyor belts within stores. Automation reduces reliance on labor, which has been difficult to come by through the pandemic, cuts costs and strengthens efficiency, Mr. Lehmkuhl said.
He said the company has no immediate plans for public listing but continues to “be ready for the public,” including complying with regulatory requirements, to “if it makes sense to do so.” in the future for capital cost reasons, we will be ready to do so. “
Write to Jennifer Smith at [email protected]
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