Lineage Raises $1.9 Billion in New Equity to Fund Investment in Global Network Capacity and Industry-Leading Technology
March 11, 2021
Led by a set of world-class investors, Lineage’s latest equity raise is the largest funding round since its founding in 2008 and brings the total equity raised since January 2020 to $4.3 billion
Company also transforms its capital structure with a new $2.8 billion corporate credit facility
Lineage to use funds for global greenfield developments, facility expansions, M&A activity and technology innovations to turbocharge end-to-end supply chain efficiency for customers
BentallGreenOak Senior Managing Partner and Co-Founder John Carrafiell to join Lineage’s Board of Directors
Novi, MI – March 11, 2021 – Lineage, LLC (“Lineage” or the “Company”), the world’s largest and most innovative temperature-controlled industrial REIT and logistics solutions provider, today announced it has raised $1.9 billion in equity from new and existing strategic partners. Participating investors include BentallGreenOak, D1 Capital Partners, Oxford Properties, CenterSquare Investment Management, MS Tactical Value and Conversant Capital, OP Trust, Cohen & Steers, among others.
“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 of Lineage. “This is clear validation of our business model and our consistent, successful strategy to optimize our customers’ temperature-controlled supply chains, which is exactly how we intend to deploy the funds – to bolster our customers’ experiences from every angle and prove ourselves as their most valuable partner.”
In addition to this latest equity raise – which is the Company’s largest since its founding in 2008 and follows September’s $1.6 billion raise – Lineage also transformed its capital structure with a new $2.8 billion Revolving Credit Facility and Term Loan A. The new facility aligns closely with traditional REIT financings, has investment-grade pricing, and becomes unsecured upon compliance with investment-grade covenants. Additionally, the new facility enables Lineage’s growth worldwide by offering multicurrency lending across Lineage’s numerous jurisdictions. This transaction represents Lineage’s first sustainability-linked loan with three Environmental, Social, and Governance (ESG) initiatives.
As Lineage continues to fulfill its purpose of transforming the food supply chain to eliminate waste and help feed the world, a significant portion of the $1.9 billion of new capital will be used to double down on new and disruptive technologies to design the temperature-controlled warehouse of the future. Tapping its award-winning team of data scientists and technologists, the Company is developing widespread algorithmic programming and automation software to streamline its operations and optimize every movement within its warehouses. Lineage – which has 13 patents and a track record of technological innovation – also announced earlier this year the launch of Lineage Link, a fully-integrated customer experience platform which provides unprecedented visibility and collaboration across its customers’ supply chains.
Additionally, the new equity will be deployed, in part, to fund greenfield development and facility expansion projects in its North American, European and Asian-Pacific operating regions. Focusing on customer need and opportunity, Lineage has recently completed or has pending construction in the following markets:
In the U.S.:
- Charleston, South Carolina
- Logan Township, New Jersey
- New Orleans, Louisiana
- Portsmouth, Virginia
- Sioux Falls, South Dakota
- Stevens Point, Wisconsin
- Aarhus (Denmark)
- Gdansk (Poland)
- Hanoi (Vietnam)
- Heywood (United Kingdom)
- Peterborough (United Kingdom)
- Tauranga (New Zealand)
“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 and Senior Managing Partner at Bay Grove, which founded and manages Lineage. “This additional equity – from some of the best regarded names in the investment world – positions Lineage for continued and meaningful growth.”
In addition to growth via greenfield development and facility expansion projects, Lineage continues its long history of acquiring best-in-class cold chain companies around the world. The Company previously announced a dozen international acquisitions and is proud to also welcome a group of well-respected organizations to strengthen its domestic operations, including:
- Dick Cold Storage, including three locations in the Greater Columbus, OH area
- A new strategic warehouse in Lyndhurst, VA
- Great Lakes Cold Storage, including two locations in Solon, OH and Cranberry Township, PA
- Win Chill Cold Storage, including one location in Sioux Falls, South Dakota
- Joliet Cold Storage, including two locations in Bolingbrook, IL and Joliet, IL
A number of the former owners from these companies, in addition to those already announced, chose to become investors in Lineage, rolling a part of their companies’ sale proceeds into Lineage equity.
Lineage represents the largest network of temperature-controlled warehouses globally, with more than 340 strategically located facilities offering over 2.1 billion cubic feet of capacity and spanning 15 countries across North America, Europe, Asia, Australia, New Zealand and South America. During 2020, Lineage completed 38 acquisitions which added 128 facilities in 11 countries, bringing over 5,000 new employees into the organization. Also in 2020, Lineage became the first temperature-controlled warehousing provider to offer refrigerated and insulated railcar solutions through the acquisition of Cryo-Trans.
In connection with the equity raise, the Company also announced a new Board Member, BentallGreenOak Senior Managing Partner and Co-Founder, John Carrafiell, who brings with him 33-years of real estate and capital markets experience. With $53 billion in Assets Under Management (AUM), BentallGreenOak is a leading global real estate investment manager and advisor, and a globally recognized provider of real estate services. Carrafiell was previously Global Co-Head of Morgan Stanley Real Estate (MSRE), where he was responsible for running the real estate investment banking platform globally as well as the principal investing business with $100 billion in AUM in over 33 countries.
“In recognizing Lineage’s exciting and industry-leading runway for innovation as well as its tremendous pipeline of growth opportunities, BentallGreenOak is thrilled with the most recent raise to become one of the Company’s largest investors,” said Carrafiell. “Serving as an observer on Lineage’s board for the past six months, I saw first-hand the Company’s extraordinary ability to continue to grow – both organically and through acquisitions – without missing a beat – despite the ongoing pandemic.”
Lineage is the world’s largest and most innovative temperature-controlled industrial REIT and logistics solutions provider. Lineage’s expertise in end-to-end logistical solutions, its unrivaled real estate network, and its use of technology combine to promote food safety, increase distribution efficiency, advance sustainability, lessen environmental impact, and minimize supply chain waste. As a result, Lineage helps customers ranging from Fortune 500 companies to small family-owned businesses increase the efficiency and protect the integrity of their temperature-controlled supply chain. Lineage has grown its cubic feet by 60% annually since 2008 to 2.1 billion cubic feet, making it the largest global temperature-controlled industrial REIT. In recognition of the company’s leading innovations, Lineage was recognized as the No 1. Data Science company on Fast Company’s Annual list of The World’s Most Innovative Companies in 2019, in addition to ranking 23rd overall in an evaluation of thousands of companies worldwide. (onelineage.com)
About Bay Grove
Bay Grove is a principal investment firm dedicated to partnering with strong management teams to invest in and build long-term platform investments. Since 2008, Bay Grove has built Lineage through acquisitions and investments completed in partnership with entrepreneurs, customers and employees. The firm has deep experience in the warehousing and logistics industry and also seeks to make investments in other attractive sectors. Bay Grove is based in San Francisco. (www.bay-grove.com)