Cold storage giant Lineage Logistics has bought up dozens of cold-chain warehouses in recent years, and now the food and perishables sector heavyweight is reloading for even greater growth, thanks to new backing of $1.7 billion from eager investors.
The fresh equity follows Novi, Michigan-based Lineage’s last funding round of $1.9 billion just 10 months ago and brings its total raised since January 2020 to $6 billion.
The latest financial backing comes from BentallGreenOak, CenterSquare Investment Management, Cohen & Steers, D1 Capital Partners, Healthcare of Ontario Pension Plan (HOOPP), NYSTRS, OP Trust, Oxford Properties, QuadReal Property Group, Rabobank, StepStone, and others.
While Lineage is one of the biggest players in the field, the news follows a flurry of investment by additional players in the same field, such as Vertical Cold Storage purchasing a facility this week from Lone Star Cold Storage and in November from Chicago’s Liberty Cold Storage. Logistics providers like FedEx Express, Wavepoint 3PL, and DB Schenker have likewise made acquisitions and consolidations, all in 2021.
According to Lineage, its latest money will strengthen the company’s balance sheet and be invested in innovation and growth opportunities, including automation projects, new construction, and supply chain technology and clean energy initiatives.
“While Lineage has already achieved significant growth since its founding in 2008, the company remains as committed as ever to its promise of preserving, protecting, and optimizing the distribution of food,” Adam Forste, co-executive chairman of Lineage and co-founder and managing partner at Bay Grove, which founded and manages Lineage Logistics, said in a release. “Lineage’s continued growth and investments in technology and innovation would not be possible without our incredible investors. We are excited to have fresh capital from this latest funding to deploy in our business and create new solutions and capacity for our customers, particularly during this time of significant disruption in global supply chains.”
Gartner, Inc.