Novi-based Lineage Logistics has agreed to acquire Preferred Freezer Services and its global network of temperature-controlled warehouses. Financial terms of the transaction were not disclosed.
Following the closing, the combined company will feature more than 1.3 billion cubic feet of temperature-controlled capacity across more than 200 facilities, with a global footprint that spans North America, Europe, and Asia. At present, Lineage and Preferred have highly complementary real estate and customer bases, making their combination a strategic expansion into new markets and new service offerings.
The transaction marks a significant milestone for the temperature-controlled logistics industry, according to Lineage. Customers now will be able to benefit from the capabilities of both companies, in which they plan to set a new standard for global reach and technological advancement.
“Bringing Preferred’s 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,” says Greg Lehmkuhl, president and CEO of Lineage. “Lineage is now better positioned than ever to meet the needs — and exceed the expectations — of food customers on a truly global scale.”
The companies say the transaction will increase Lineage’s ability to invest in next-generation technologies, while making new advances using the companies’ combined intellectual property. Together, the enhanced innovation capabilities will enable Lineage to provide operational and energy efficiency to its expanded customer base.
After the combination, Lineage will have 17 automated facilities with more than 800,000 automated pallet positions, including two of the largest automated facilities in the world, and an accelerating strategy to bring more automated solutions to meet customer demands and complexity.
“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, CEO of Preferred. “I am tremendously proud of the company we have built and longstanding customer relationships we have fostered since founding Preferred Freezer Services in 1989.”