Industry News

On Monday, Lineage Logistics Holdings, the world's largest and most innovative provider of temperature-controlled logistics solutions, LLC ("Lineage" or "Company") announced that it had acquired EmergentCold. Sign the final agreement. The acquisition strengthens the company's presence at major U.S. ports and marks the company's entry into the temperature-controlled logistics markets of Australia, New Zealand and Sri Lanka, cementing its presence in the Asia-Pacific region. Financial details of the deal were not disclosed.

"Food manufacturers, manufacturers and retailers are looking for cold-chain partners that can deliver dynamic and true end-to-end temperature-controlled logistics solutions that can reach anywhere in the world," said Greg Lehmkuhl, President and CEO of Lineage. Joining the Lineage family will not only significantly enhance our ability to expand our international presence, but will also deepen our investment in port strategy and international trade. We are better able to help our customers cope with changing market dynamics such as global network optimization, tariff impact, changes in consumer preferences, and open up their potential consumer market opportunities. "

Upon completion of the transaction, the combined company will have more than 17 billion cubic feet of cold-chain storage capacity at 260 facilities in 10 countries across North America, Europe, Asia, Australia and New Zealand. Through the acquisition, Lineage added a new distribution center in the Dallas-Fort Worth market and four port facilities in New Orleans, Houston and Charleston, USA, to support customers with import, export and customs brokerage services. The transaction also resulted in the acquisition of real estate at specific facility locations currently leased by Emergent under a long-term lease agreement.

Founded in 2017 by Elliott Management and Neal Rider, Emergent will bring an experienced management team to Lineage with proven experience in driving company growth and building long-term relationships with customers in the global market.

Neal Rider, founder and CEO of Emergent, said, "Joining Lineage helps accelerate our goal of providing our customers with the highest quality global cold chain solutions. Lineage has become a leader in our industry, and Emergent's addition expands its global footprint and port presence to create more opportunities for our mutual customers. I would also like to thank Elliott Management for trusting and supporting us while Emergent Cold is still in the conceptual stage, and for the tireless leadership and support of Executive Chairman Chris Jamroz. Their collaboration, support and professionalism are critical to the success of Emergent, and we look forward to opening a new chapter with Bay Grove and Lineage. "

Cody Kittle, associate portfolio manager at Elliott Management, said: "We worked with Neal because we saw a compelling opportunity to support him in building a company with global reach. In less than two years, we have acquired seven high-performing companies in six countries and four continents, established facilities in two undeveloped locations, and achieved significant revenue and profit growth in the course of operations. We congratulate Neal, the Mergent team and Lineage, and we think Lineage is a great partner for Emergent. We look forward to continuing to hold equity in the combined entity. "
 

Chris Jamroz, Executive Chairman of Emergent, said: "As an innovative leader in the global refrigeration industry, we look forward to Emergent becoming a member of the Lineage family. "

Kevin Marchetti, co-founder and managing partner of Bay Grove, Lineage's leading investment firm, said: "We have been following Emergent's impressive growth trajectory and have long admired their management team. We are happy to bring their capabilities, relationships, and channels to our organization. Together, our team will work to strengthen our relationships with our customers by leveraging our expanding network and applying innovative solutions to the most pressing challenges. "

Demand for cold storage is growing in Australia, as well as in neighbouring countries such as New Zealand, Vietnam and Sri Lanka. Australia's cold-chain logistics market has exceeded $5 billion. The industry is growing rapidly and is part of the asia-Pacific region's domestic and international food supply chain, including dairy products, seafood, meat and poultry products, frozen vegetables and other frozen and refrigerated foods. Once the deal is complete, Lineage is better able to help customers meet their growing export demandand and the growing supply chain.

Since its inception in 2008, Lineage has rapidly expanded its presence by acquiring first-class cold-chain companies, investing in new projects and promoting organic growth in the company's business. Lineage's acquisition of Emergent builds on its past success in integrating complementary companies into its portfolio.

The transaction is expected to close in 2020 and requires customary trading conditions and regulatory approval.