Lineage Logistics Holdings announced it has signed definitive agreements to acquire Emergent Cold. This 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. Financial terms of the transactions were not disclosed.
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.
“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. “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 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. Once the deal closes, Lineage will be poised to help customers meet growing export demand and their need for a more expansive supply chain.
The transactions are expected to close in 2020, subject to customary closing conditions and regulatory approvals.