Michigan-based temperature-controlled logistics company Lineage Logistics has signed definitive agreements to acquire Emergent Cold, the international cold chain logistics provider. Financial terms of the transactions were not disclosed.
This acquisition strengthens the company’s 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.
Following closing of the transactions, the combined Company will feature over 1.7 billion cubic feet of temperature-controlled capacity across 260 facilities in 10 countries, with a global footprint that now spans North America, Europe, Asia, Australia and New Zealand.
With the acquisition, Lineage 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 under long-term lease agreements.
The transactions also position Lineage to take advantage of growing demand for cold storage space in Australia – a sector valued at $5 billion – and in neighboring 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.
Latham & Watkins LLP served as legal advisor to Bay Grove and Lineage in this transaction. Debevoise & Plimpton LLP served as legal advisor to Emergent.
The transactions are expected to close in 2020, subject to customary closing conditions and regulatory approvals.