Lineage, Inc., a global temperature-controlled warehouse real estate investment trust (REIT), has announced a major expansion of its U.S. cold storage operations. The plan includes a series of acquisitions, new facility developments, and investments in automation technology.
© Lineage
A key component of the expansion is an agreement to acquire four cold storage warehouses in the U.S. from Tyson Foods, Inc. The facilities, located in Pottsville (Pennsylvania), Olathe (Kansas), Rochelle (Illinois), and Tolleson (Arizona), collectively comprise approximately 49 million cubic feet of capacity and 160,000 pallet positions. The transaction is valued at $247 million and is expected to close in the second quarter of 2025, subject to regulatory approvals and customary closing conditions.
As part of the acquisition, Lineage plans to retain over 1,000 Tyson Foods employees at the acquired facilities. Over time, the sites are expected to transition into public warehouses within Lineage's broader network.
In addition to the acquisition, Lineage and Tyson Foods have agreed to a multi-year collaboration under which Lineage will design, construct, and operate two new fully automated cold storage facilities in major U.S. distribution markets. Tyson Foods will serve as the anchor tenant in both. The development of these greenfield sites is expected to require more than $740 million in capital investment. Combined, the facilities will add over 80 million cubic feet and nearly 260,000 pallet positions to Lineage's storage capacity.
Tyson Foods will also begin storing product at Lineage's newly built automated cold storage warehouse in Hazelton, Pennsylvania. The facility utilizes LinOS, Lineage's proprietary warehouse execution system.
Altogether, Lineage anticipates investing approximately $1 billion into these acquisitions and developments over the coming years.
The agreement highlights continued consolidation and modernization efforts in the cold storage sector, with a focus on automation, operational integration, and strategic partnerships between storage providers and food producers.
For more information:
Megan Hendricksen
Lineage
Tel: +1 800 678 7271
Email: [email protected]
www.onelineage.com
