Lineage Logistics, Novi, Mich., announced plans to acquire Preferred Freezer Services (PFS), a Chatham, N.J.-based network of state-of-the-art, temperature-controlled warehouses.
Together, the companies hope to set a new standard for global reach and technological advancements.
“We are thrilled to welcome Preferred into the Lineage family of companies,” says Greg Lehmkuhl, president and CEO of Lineage. “Bringing their first-class management team, deep industry experience and network of strategically located facilities into our organization will enable us to provide best-in-class service offerings for customers worldwide. Lineage is now better positioned than ever to meet the needs –and exceed the expectations –of food customers on a truly global scale.”
Following the closing, the combined company will feature over 1.3 billion cubic feet of temperature-controlled capacity across over 200 facilities, with a global footprint spanning North America, Europe and Asia.
“Joining Lineage will bring Preferred to the next level of customer service by broadening our global reach while also significantly expanding our innovation capabilities,” says John Galiher, chief executive officer of PFS. “I am tremendously proud of the company we have built and longstanding customer relationships we have fostered since founding Preferred Freezer Services in 1989. We have found the ideal partner in Lineage, and I look forward to working closely with Greg, as well as the Lineage and Bay Grove teams, to offer our expanded customer base the best services and capabilities in the industry.”
This transaction will increase Lineage’s ability to invest in next-generation technologies while making new advances using combined intellectual property. After the combination, Lineage will have 17 automated facilities with over 800,000 automated pallet positions, including what are said to be the two largest automated facilities in the world.
“We have followed Preferred’s impressive growth and innovations under John’s leadership since launching Lineage, and always knew that bringing these two companies together would reinforce our vision to be the most dynamic temperature-controlled company in the industry,” adds Kevin Marchetti, co-founder and managing partner of Bay Grove, the San Francisco-based principal investment firm backing Lineage. “This transaction will equip Lineage with the global reach and innovation capabilities that will fuel the next chapter of the company’s growth, and we are excited to have them on board.”
“I’d like to thank John and the entire Preferred team for their incredible partnership,” says Peter Lamm, managing director of Fenway Partners, Preferred’s equity partner and owner, based in New York. “Preferred has built a tremendous platform under the management team’s leadership, and on behalf of Fenway Partners, I am proud to have supported its sustained growth over the past decade. We wish both organizations great success as a combined company.”
As part of the transaction, Stonepeak Partners, New York, and D1 Capital Partners, New York, made new equity investments.