Lineage Logistics raises over $700m to fund investment

Novi, Michigan, USA: Lineage Logistics, the world’s largest temperature-controlled logistics provider and industrial real estate investment trust, has raised over $700m in equity from new and existing strategic partners.

“Our latest equity raise shows the confidence our investors have in Lineage’s business model and our demonstrated ability to meet demand globally in the face of macro-economic headwinds, inflationary pressures and capital markets volatility,” said Greg Lehmkuhl, chief executive, Lineage.

“We believe we have an especially important responsibility to continue investing in new warehouse capacity in critical locations to not only help reduce waste and congestion in the global food supply chain but also to help our customers grow.”

The new capital will support the completion of a global pipeline of more than 20 in-flight greenfield and expansion projects totalling over $1.25bn as well as two new, fully automated US hub projects in core Southern Californian and Northeastern distribution markets, the company says.

In total, these projects represent over 700,000 new pallet positions and a 7% increase in Lineage’s global capacity. Additional projects are underway to help support the growing customisation of producer and retailer supply chains and create capacity in congested domestic and international markets.

“In addition to new construction, this latest round of funding will further our global investments in solar capacity with a plan to increase our on-site solar installations by over 50% in the coming year,” said Adam Forste, co-executive chairman, Lineage and managing partner at Bay Grove, which founded and manages Lineage Logistics.

“We have been and continue to be deeply committed to decarbonising across the Lineage platform, and we will continue to invest in conventional and unconventional initiatives to reduce our resource consumption, especially in light of recent volatility in global energy markets.”

The equity raise follows Lineage’s latest funding round of $1.7bn, announced in January 2022. The latest funding brings the total equity raised since January 2020 to $6.7bn.