The company said this acquisition strengthens its port presence in the United States and enables 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.
“Food producers, manufacturers and retailers are looking for cold chain partners who can offer a dynamic and truly end-to-end temperature-controlled logistics solution, and one that can reach every corner of the world,” said Greg Lehmkuhl, president and chief executive officer of Lineage. “Welcoming Emergent to the Lineage family not only adds significant capacity to our international footprint, but also deepens our commitment to our port strategy and international trade.
“We are better able to help customers respond to constantly shifting market dynamics, such as global network optimization, tariff impacts, consumer preference shifts, and much more while at the same time unlocking new potential market opportunities to sell their goods.”
Following the expected closings of the transactions in 2020, the combined company will feature more than 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, Lineage said. 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 network of locations supporting import, export, and customs brokerage services. The transaction also includes the purchase of real estate at select facility sites currently leased by Emergent under long-term lease agreements.
Emergent, which was founded in 2017 by Elliott Management and Neal Rider, brings to Lineage an experienced management team with a proven track record of growth and longstanding relationships with customers in global markets.
“Joining Lineage accelerates our goal of providing the highest-quality global cold chain solutions to our customers,” said Rider, Emergent’s chief executive officer. “Lineage has established itself as a leader in our industry, and expanding its global footprint and port presence with the addition of Emergent will create incredible opportunities for our collective customers. 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, including dairy, seafood, raw and cooked meat, poultry, frozen vegetables, and other frozen or chilled foods.
“As an innovative leader in global cold storage, we look forward to making Emergent part of the Lineage team,” Jamroz said.