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Lineage Logistics racks up $700 mln

Novi, Michigan-based Lineage Logistics LLC, a provider of temperature-controlled supply chain solutions, has raised $700 million in funding. The investors included Stonepeak Partners LP and D1 Capital Partners. Lineage is controlled and operated by Bay Grove.

PRESS RELEASE

NOVI, Mich.–(BUSINESS WIRE)–July 17, 2018–Lineage Logistics, LLC (“Lineage”), the world’s most innovative and trusted provider of temperature-controlled supply chain solutions, today announced the $700 million acquisition of a significant minority ownership interest in the company.

The organizations investing in Lineage include funds managed by Stonepeak Partners LP (“Stonepeak”), an infrastructure-focused private equity firm; D1 Capital Partners, an investment fund founded by former Viking Global Investors CIO Daniel Sundheim; and current Lineage investors.

Lineage is controlled and operated by Bay Grove Capital (“Bay Grove”), a San Francisco-based owner-operator dedicated to partnering with strong management teams to build exceptional businesses.
Related to these investments, Stonepeak’s Senior Managing Director Luke Taylor and Principal James Wyper will join Lineage’s Board of Directors.

“From the beginning, Lineage has been focused on reimagining the world’s food supply chain by bringing best-in-class technologies to a vital food infrastructure,” said Greg Lehmkuhl, President and CEO of Lineage. “These investors are sophisticated capital partners that share our positive long-term view of the industry and Lineage, and this investment will provide us with even more opportunities to accelerate our future innovation and growth.”

“We see significant long-term value potential in this industry and specifically at Lineage,” said Luke Taylor. “Stonepeak has been following the cold storage industry very closely for many years, and we’ve admired the tremendous success Lineage and Bay Grove have had in such a short period of time, growing from a single warehouse in 2008 to more than 100 locations across the world. We are excited to be actively partnering with Lineage and Bay Grove on the next phase of their growth and capital deployment into new facilities.”

“We are proud to have worked together with the Lineage management team to build the fastest-growing temperature-controlled supply chain company and the industry’s foremost innovator,” said Kevin Marchetti, Managing Partner at Bay Grove. “The impact Lineage has already made is remarkable, and we are excited by the future opportunities to expand and continue to advance the industry.”

About Lineage Logistics, LLC: Lineage Logistics is the industry’s leading innovator in temperature-controlled supply chain and logistics. Lineage’s expertise in end-to-end logistical solutions, its unrivaled real estate network, and its use of technology combine to promote food safety, increase distribution efficiency, advance sustainability, lessen environmental impact, and minimize supply chain waste. As a result, Lineage helps customers ranging from Fortune 500 companies to small family-owned businesses increase the efficiency and protect the integrity of their temperature-controlled supply chain. (www.lineagelogistics.com)

About Bay Grove Capital: Bay Grove is a principal investment firm dedicated to partnering with strong management teams to invest in and build long-term platform investments. Since 2008, Bay Grove has built Lineage Logistics through acquisitions and investments completed in partnership with entrepreneurs, customers and employees. The firm has deep experience in the warehousing and logistics industry and also seeks to make investments in other attractive sectors. Bay Grove is based in San Francisco. (www.bay-grove.com)

About Stonepeak: Stonepeak is an infrastructure-focused private equity firm headquartered in New York with $15 billion of assets under management. Stonepeak invests in long-lived, hard-asset businesses and projects that provide essential services to customers, and seeks to actively partner with high-quality management teams, facilitate operational improvements, and provide capital for growth initiatives. (www.stonepeakpartners.com)

About D1 Capital Partners: D1 Capital LP is a global investment advisory firm that operates across public and private markets. The firm combines the talent and operational excellence of a large, premier asset management firm with the flexible mandate and long-term time horizon of a family office. Founded in 2017 by Daniel Sundheim, D1 focuses on investing in the global internet, technology, telecom, media, consumer, healthcare, industrial, and real estate sectors.