Lineage Logistics, a Novi, Michigan-based provider of temperature-controlled logistics solutions, announced Monday it has acquired Preferred Freezer Services, a Perth Amboy-based network of temperature-controlled warehouses.
Financial terms of the transaction were not disclosed.
“We are thrilled to welcome Preferred into the Lineage family of companies,” Greg Lehmkuhl, CEO and president of Lineage, said. “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.”
Once the deal has closed, the new company will have more than 1.3 billion cubic feet of temperature-controlled capacity at more than 200 facilities. Its footprint will span 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,” John Galiher, CEO of Preferred, said. “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.”
After the merger, Lineage will have 17 automated facilities with more than 800,000 automated pallet positions.
“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,” Kevin Marchetti, co-founder and managing partner of Bay Grove, the principal investment firm backing Lineage, said. “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,” Peter Lamm, managing director of Fenway Partners, Preferred’s equity partner and owner, said. “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.”
The deal is expected to close in the second quarter of 2019.
Morgan Stanley & Co. LLC acted as financial adviser to Lineage and Latham & Watkins LLP served as legal adviser to Bay Grove and Lineage. UBS Investment Bank acted as financial adviser and Ropes & Gray LLP served as legal adviser to Preferred.