Lineage Logistics cements strategic presence in Asia-Pacific with Emergent Cold

Nov 20, 2019: Temperature-controlled logistics solutions provider Lineage Logistics has signed definitive agreements to acquire Emergent Cold. The agreement strengthens Lineage Logistics' port presence in the United States and its strategic presence in the Asia-Pacific region.

The aquisition signifies Lineage Logistics' entry into the Australian, New Zealand, and Sri Lankan temperature-controlled logistics markets. Lineage Logistics will now have presence in North America, Europe, Asia, Australia and New Zealand. However, financial terms of the transactions were not disclosed.

Lineage Logistics supports import, export and customs brokerage services for its customers.

“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 optimisation, tariff impacts, consumer preference shifts, and much more, while at the same time unlocking new potential market opportunities to sell their goods,” said Greg Lehmkuhl, president and chief executive officer of Lineage

The deal creates over 1.7 billion cubic feet of temperature-controlled capacity across 260 facilities in 10 countries. The acquisition adds a newly constructed distribution centre in Lineage Logistics' Dallas-Fort Worth market, as well as four US port facilities in New Orleans, Houston and Charleston. The transaction also includes the purchase of real estate at select facility sites currently leased by Emergent under long-term lease agreements.

The transactions also position Lineage to take advantage of growing demand for cold storage space in Australia – a sector valued at US$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. Once the deal closes, Lineage will be poised to help customers meet growing export demand and their need for a more expansive supply chain.

“Joining Lineage accelerates our goal of providing the highest quality global cold chain solutions to our customers. 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,” said Neal Rider, founder and chief executive officer, Emergent Cold.