The supply chain recently got a billion-dollar boost as Lineage Logistics announced a major investment to uncover innovative new solutions to bolster the industry. The logistics solutions provider pulled back the curtain on $1.7 billion in funding from both new and existing strategic partners.
“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,” said Greg Lehmkuhl, President and Chief Executive Officer of Lineage Logistics. “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.”
The new capital will be used to strengthen Lineage’s balance sheet and will fuel Lineage’s investments in industry-leading technology, including automation and proprietary software tools that help to improve supply chain efficiencies, according to a press release. In addition, it will also be used to fund Lineage’s growth through greenfield developments, facility expansions, and investments in clean energy initiatives.
“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 optimizing the distribution of food,” said Adam Forste, Co-Executive Chairman of Lineage and Co-Founder and Managing Partner at Bay Grove, which founded and manages Lineage Logistics. “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.”
The equity raise follows Lineage’s previous funding round of $1.9 billion, announced in March 2021. With this latest funding round, the total equity raised since January 2020 accumulates to $6 billion.
Morgan Stanley acted as financial advisors during this round, and Latham Watkins served as legal counsel for Lineage. Participating investors included BentallGreenOak, CenterSquare Investment Management, Cohen & Steers, D1 Capital Partners, Healthcare of Ontario Pension Plan (HOOPP), NYSTRS, OP Trust, Oxford Properties, QuadReal Property Group, Rabobank, StepStone, and others.
How will this investment lead to new innovations across the supply chain? Keep reading Deli Market News to find out.
