In an effort to expand its warehouse footprint, Lineage Logistics LLC recently acquired Preferred Freezer Services LLC for over $1 billion. Together, the two companies will own more than 200 facilities with 1.3 billion cubic feet of cold storage space across Asia, Europe, and North America and will displace the current leading provider of cold storage, Americold Realty Trust.
CEO of Lineage, Greg Lehmkuhl, says, “This is clearly the game-changer. Having a broader footprint, having more options for our customers to store their products is very valuable.”
As consumer trends display a preference for fresh foods, online ordering, etc., demand for cold storage space is increasingly on the rise and is expected to drive more consolidation and investment in the market; despite the high-cost of warehouse development and low margins which has deterred investors in the past.