US-headquartered cold supply chain service Lineage Logistics secured $1.7bn yesterday from investors including financial services firm Rabobank, representing one of the largest corporate-backed rounds for a logistics provider in recent months.
Real estate developers QuadReal Property Group and Oxford Properties took part in the round, as did BentallGreenOak, CenterSquare Investment Management, Cohen & Steers, D1 Capital Partners, Healthcare of Ontario Pension Plan (HOOPP), NYSTRS, OP Trust and StepStone.
Founded in 2012, Lineage provides refrigerated shipping and temperature-controlled warehouse services for perishables. It runs more than 400 storage facilities globally and has integral logistics technology in place to help achieve sustainable and efficient distribution of foodstuffs.
The company will use the cash to boost innovation and growth efforts including developing automation tools, building new hubs, creating additional supply chain technology and implementing a renewable energy strategy.
Lineage said it has received $6bn in equity funding since January 2020, having last raised $1.9bn in March 2021 from Oxford Properties, investment bank Morgan Stanley’s MS Tactical Value and Conversant Capital unit, CenterSquare Investment Management, BentallGreenOak, Cohen & Steers, D1 Capital Partners and OP Trust.
Greg Lehmkuhl, president and CEO of Lineage, said: “This latest round of funding is further validation of our business strategy and will be used to double down on our commitment to offering innovative, end-to-end supply chain solutions for our customers worldwide.
“As we head into 2022, this new equity gives us even more confidence in our ability to drive future growth opportunities for our business, the industry and the wider food supply chain.”
Adam Forste, co-chairman of Lineage and co-founder and managing partner of Bay Grove, the investment group that incubated and oversees the company, added: “While Lineage has already achieved significant growth since its founding in 2008, the company remains as committed as ever to its promise of preserving, protecting and optimising the distribution of food.
“Lineage’s continued growth and investments in technology and innovation would not be possible without our incredible investors. We are excited to have fresh capital from this latest funding to deploy in our business and create new solutions and capacity for our customers, particularly during this time of significant disruption in global supply chains.”
Canada-based Bolt Logistics is another logistics services provider that recently got corporate backing, having closed a $92.5m series B round in November 2021 that included Ingka Investments, part of furniture retailer Ikea’s parent firm, Ingka Holding.
US-headquartered trucking management technology provider TrueNorth meanwhile raked in $50m in series B funding last month from investors including Flexport Fund, the corporate venturing arm of freight forwarder Flexport.
Image courtesy of Lineage Logistics LLC.
