Lineage Logistics, provider of temperature-controlled logistics solutions, has signed a definitive agreement to acquire Preferred Freezer Services, a global network of state-of-the-art, temperature-controlled warehouses. Financial terms of the transaction were not disclosed.
This transaction marks a milestone for the temperature-controlled logistics industry. Customers will now be able to benefit from the complementary capabilities of two of the industry’s most innovative companies.
“We are thrilled to welcome Preferred into the Lineage family of companies,” said Greg Lehmkuhl, president and chief executive officer of Lineage. “Bringing their first-class management team, deep industry experience and network of strategically located facilities into our organization will enable us to provide best-in-class service offerings for customers worldwide. Lineage is now better positioned than ever to meet the needs—and exceed the expectations—of food customers on a truly global scale.”
After the closing, the combined company will feature more than 1.3 billion cubic feet of temperature-controlled capacity across 200-plus facilities, with a global footprint that spans North America, Europe and Asia. At present, Lineage and Preferred have complementary real estate and customer bases, making their combination a strategic expansion into new markets and service offerings.
“Joining Lineage will bring Preferred to the next level of customer service by broadening our global reach while also significantly expanding our innovation capabilities,” said John Galiher, CEO of Preferred. “I am tremendously proud of the company we have built and longstanding customer relationships we have fostered since founding Preferred Freezer Services in 1989. We have found the ideal partner in Lineage, and I look forward to working closely with Greg, as well as the Lineage and Bay Grove teams, to offer our expanded customer base the best services and capabilities in the industry.”
Lineage has grown rapidly through acquisitions and organic growth since its founding in 2008. This transaction will increase its ability to invest in next-generation technologies while making new advances using combined intellectual property. After the combination, Lineage will have 17 automated facilities with more than 800,000 automated pallet positions.
As part of the transaction, significant new equity was committed by existing investors, Stonepeak Partners and D1 Capital Partners.
Lineage and Preferred expect the transaction to close in the second quarter of 2019, subject to customary closing conditions and regulatory approvals.