PE-backed Lineage Logistics to buy Ontario Refrigerated Services

Lineage Logistics, a portfolio company of Bay Grove Capital, D1 Capital Partners and Stonepeak Partners, has agreed to acquire Ontario Refrigerated Services, a Toronto-based family-operated cold storage company.

Lineage Logistics, a portfolio company of Bay Grove Capital, D1 Capital Partners and Stonepeak Partners, has agreed to acquire Ontario Refrigerated Services, a Toronto-based family-operated cold storage company. No financial terms were disclosed. The deal is expected to close in the coming weeks.

PRESS RELEASE

NOVI, Mich.–(BUSINESS WIRE)–Lineage Logistics, LLC (“Lineage” or the “Company”), the world’s largest and most innovative provider of temperature-controlled logistics solutions, today announced it has signed a definitive agreement to acquire Ontario Refrigerated Services, Inc. (“ORS”), a leading family-operated cold storage company offering temperature-controlled space in the Greater Toronto market, marking Lineage’s entrance into the Canadian market. Financial terms of the transaction were not disclosed.

Established in 2003 by Founder and President Roger Kropf and Controller and CGA Accountant Kate Kropf, ORS is a leading cold storage partner with its long-tenured customer relationships and wholly-owned facilities strategically located near customers’ production facilities. The acquisition of ORS includes four young and modern facilities within 150 km (~93 miles) of Toronto that collectively offer 510,000 square feet (16.2 MM cubic feet) and 100,000 pallet positions of refrigerated capacity.

“We are thrilled to expand our industry-leading, global network into the Canadian market and can think of no better group with whom to begin this journey than the ORS team,” said Greg Lehmkuhl, President and Chief Executive Officer of Lineage. “The Ontario market is a cornerstone of the Canadian economy, making this the natural place for Lineage to launch our broader Canadian market platform. Further, ORS’s entrepreneurial spirit and local roots are a great fit with the Lineage culture. We’re excited to have this starting point to expand further in Canada.”

Lineage has partnered on this investment with CapCold Group Inc., an entity formed by Robert and Patrick Molyneux to pursue the acquisition of North American cold storage companies, with in-depth experience in major Canadian market centers. Robert and Patrick Molyneux will join the Lineage team as advisors as the Company works to strengthen its Canadian platform. “We look forward to working with the ORS and Lineage management teams to further expand their Canadian market footprint,“ said Robert Molyneux, President and Chairman of CapCold.

“Kate and I are pleased to congratulate Lineage on the acquisition of Ontario Refrigerated Services, Inc.,” said Roger Kropf, ORS Founder and President. “The support of our customers and team have contributed to our rapid growth and success for the past 17 years, and I believe Lineage and CapCold are the right partners to take ORS into the future.“

Following the close of this transaction, the combined Company will feature a global footprint that spans over 1.9 billion cubic feet of temperature-controlled capacity across over 300 facilities in 13 countries spanning North America, Europe, Asia, Australia, New Zealand, and South America.

The transaction is expected to close in the coming weeks, subject to customary closing conditions.

About Lineage Logistics
Lineage is the world’s largest and most innovative provider of temperature-controlled logistics solutions. 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. In recognition of the company’s leading innovations, Lineage was recognized as the No 1. Data Science company on Fast Company’s Annual list of The World’s Most Innovative Companies in 2019, in addition to ranking 23rd overall in an evaluation of thousands of companies worldwide. (www.lineagelogistics.com)

About Ontario Refrigerated Services, Inc.
Ontario Refrigerated Services is a family-based cold storage business that was started in 2003 by Roger and Kate Kropf, serving food customers with temperature-controlled logistics expertise in the Greater Toronto market. Starting with just two 32,000 square foot freezers, ORS has grown to encompass 500,000+ square feet, which includes 11 freezers and 5 coolers, totaling over 16 million cubic feet of capacity. (www.orsinc.ca)