Warehousing & Logistics

Southern Cold Storage in Alabama and Louisiana Join Lineage Network

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Add Southern Cold Storage to Lineage Logistics’ lengthening list of refrigerated warehouse acquisitions. Over the past 18 months the Novi, Michigan, USA-headquartered company has completed strategic domestic purchases of 10 PRW operators at 24 locations offering over 5.5-million square feet of space and 153-million cubic feet of capacity across core population and food production markets in the in the United States. All of them have either been successfully integrated into the Lineage network or are on track to be integrated by the end of this year.

Among the assets acquired, reportedly for $6 million, is a 103,300 square foot facility in Gadsden, Alabama that includes an 81,500 square foot freezer, an 11,000 square foot refrigerated dock and a 3,500 square foot administrative office. It sits on five acres within a 90-acre development that includes Keystone Foods’ cooked chicken plant. Keystone’s final packed products are shipped through a connecting corridor on a pallet conveyor into the warehouse, where they are stored at -10°F until shipped to end-users.

The second Southern Cold Storage operation, in Baton Rouge, Louisiana (pictured above), is an 85,000 square foot facility featuring a 75,000 square foot freezer, a 4,000 square foot refrigerated dock and a 1,500 square foot administrative office.

News about the purchase, announced on August 11, came on the heels of the recent acquisition of Ontario Refrigerated Services. Consummation of that deal marked Lineage’s entrance into Canada and the launch of its Greater North American platform.

Here is a list of other acquisitions made in the United States within the past year and a half:

  • Allied Frozen Storage, including eight locations in upstate New York
  • One net leased location in Salt Lake City, Utah
  • Professional Freezing Services, including two locations in Bedford Park, Illinois
  • Iowa Cold Storage, including one location in Altoona, Iowa
  • Western Distribution Services, including two locations in Washington State
  • One location at the Port of Seattle, Washington
  • Two locations from Ryder Logistics in Rochelle, Illinois, and Milwaukee, Wisconsin
  • Two locations from NORPAC in Oregon
  • Three net leased locations from Investcorp in the metropolitan Chicago area

“While we have recently completed a number of international acquisitions, the focus remains on strengthening our US footprint and offering customers additional capacity and services in key markets,” said Lineage President and CEO Greg Lehmkuhl. “Each of these acquisitions amplifies our existing facility network and the incredible value we are able to provide our customers.”

Stepped up purchases by Lineage in the United States is in response to growing demand for cold storage services, which is supported by population growth, changing consumer food preferences and an increasing need for the expertise of third-party logistics providers as food supply chains become increasingly complex.

Lineage, a holding of San Francisco-headquartered investment firm Bay Grove, ranks as the world’s largest provider of temperature-controlled logistics services to food producers and distributors. Its global footprint encompasses more than 1.9 billion cubic feet of temperature-controlled capacity at over 300 facilities in 13 countries spanning North America, Europe, Asia, Australia, New Zealand and South America.