Lineage Logistics Holdings has signed a definitive agreement to acquire Emergent Cold. The 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.
“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,” says 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, Lineage will have over 1.7 billion cubic feet of temperature-controlled capacity across 260 facilities in 10 countries. With the acquisition, the company 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.
“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.”
The transaction also positions Lineage to take advantage of growing demand for cold storage space in Australia, 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.
The transactions are expected to close in 2020, subject to customary closing conditions and regulatory approvals.