Novi’s Lineage Logistics acquires Poland’s largest cold-storage firm
Novi-based temperature-controlled logistics provider Lineage Logistics announced Tuesday the acquisition of Poland’s largest cold storage and logistics provider Pago Sp. z o.o.
The acquisition expands Lineage’s growing footprint in Europe. Under the deal, the company acquired six properties from Pago’s parent company, Tonnies Holding GmbH, the company said in a press release.
Financial terms of the deal were not disclosed.
“We are excited to enter Poland by acquiring Pago, which is known for its dedicated team members, the most modern network in its market and an entrepreneurial culture with roots as a family business — just like so many of the organizations we’ve embraced as part of our ‘One Lineage’ family,” Mike McClendon, Lineage’s president of international operations and executive vice president of network optimization, said in a press release. “The acquisition also expands the Lineage footprint to an increasingly important market for our customers and a region where we see opportunities to add capacity and implement new, innovative customer solutions.”
Lineage now boasts more than 1.9 billion cubic feet of cold storage warehousing space at more than 330 buildings in 15 countries in North America, South America, Europe, Asia, Australia and New Zealand.
Pago’s current top executives, Adam, Patryk and Maciej Gosciniak, will remain on the Polish company’s board as part of the deal.
Lineage, backed by private equity founders Bay Grove Capital, has been on an acquisition tear for several years, completing 10 acquisitions in the U.S. in August alone. The company also acquired competitor Emergent Cold in June in a $900 million deal.
In September, the firm closed on a $1.6 billion fund raise from investors including Oxford Properties Group, private equity firm BentallGreenOak and Dan Sundheim’s D1 Capital Partners.
Lineage CEO Greg Lehmkuhl told Crain’s in October many more acquisitions are on the horizon as the world’s largest cold food storage firms works its way toward an initial public offering.
“We could have raised a whole lot more than $1.6 billion,” Lehmkuhl said. “Going for an IPO is about optimizing capital structure. Right now, we’re not lacking in capital. We can get it from new and existing structures. We are more concerned with working to be IPO ready; having the controls in place to be the best company we can be. We’re quickly putting in place in case we do want to pull the switch. But we’ve promised no timetable. It’s if and when it makes sense, we’re ready to go.”
Posted By: Crain’s Detroit Business on December 3, 2020. For more information, please click here to read the source article.
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