Preferred Freezer Services

Lineage Logistics Announces Acquisition of Preferred Freezer Services

Published date: 
Monday, February 25, 2019 - 09:45

Novi, MI – February 25, 2019 – Lineage Logistics (“Lineage” or the “Company”), the world’s most innovative and trusted provider of temperature-controlled logistics solutions, today announced it has signed a definitive agreement to acquire Preferred Freezer Services (“Preferred”), a global network of state-of-the-art, temperature-controlled warehouses. This transaction marks a significant milestone for the temperature-controlled logistics industry. Customers will now be able to benefit from the complementary capabilities of two of the industry’s most innovative companies. Together the companies hope to set a new standard for global reach and technological advancements for their customers. Financial terms of the transaction were not disclosed.

 

“We are thrilled to welcome Preferred into the Lineage family of companies,” said Greg Lehmkuhl, President and Chief Executive Officer of Lineage. “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.”

 

Following the closing, the combined company will feature over 1.3 billion cubic feet of temperature-controlled capacity across over 200 facilities, with a global footprint that spans North America, Europe and Asia. At present, Lineage and Preferred have highly complementary real estate and customer bases, making their combination a strategic expansion into new markets and new service offerings.

 

“Joining Lineage will bring Preferred to the next level of customer service by broadening our global reach while also significantly expanding our innovation capabilities,” said John Galiher, Chief Executive Officer of Preferred. “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.”

 

This transaction will increase Lineage’s ability to invest in next-generation technologies while making new advances using the companies’ combined intellectual property. Together, these enhanced innovation capabilities will enable Lineage to provide unparalleled operational and energy efficiency to its expanded customer base. After the combination, Lineage will have 17 automated facilities with over 800,000 automated pallet positions, including the two largest automated facilities in the world and an accelerating strategy to bring the most sophisticated automated solutions to meet ever growing customer demands and complexity.

 

“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,” commented Kevin Marchetti, Co-Founder and Managing Partner of Bay Grove, the principal investment firm backing Lineage. “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,” said Peter Lamm, Managing Director of Fenway Partners, Preferred’s equity partner and owner. “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.”

 

As part of the transaction, significant new equity was committed by existing investors, Stonepeak Partners and D1 Capital Partners.

 

Lineage has grown rapidly through acquisitions and organic growth since its founding in 2008. The Company’s acquisition of Preferred builds on the success of its long history of successfully integrating complementary companies into its portfolio. The companies expect the transaction to close in the second quarter of 2019, subject to customary closing conditions and regulatory approvals.

 

Morgan Stanley & Co. LLC acted as financial advisor to Lineage in this transaction, and Latham & Watkins LLP served as legal advisor to Bay Grove and Lineage. UBS Investment Bank acted as financial advisor to Preferred, with Ropes & Gray LLP serving as legal advisor. 

 

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About Lineage Logistics: 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.  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 Bay Grove: 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 Preferred Freezer Services: Preferred Freezer Services, headquartered in Chatham, New Jersey, is dedicated to designing, constructing, and operating state-of-the-art warehouses throughout the United States and Asia. Preferred Freezer Services has grown from a single facility in 1989 to 39 U.S. locations and still growing. Preferred Freezer Services operates in locations throughout the United States with facilities in New York/New Jersey, California, Florida, Georgia, Illinois, Massachusetts, Pennsylvania, Texas, Virginia, and Washington State, with additional international locations in China and Vietnam. (www.preferredfreezer.com)

 

About Fenway Partners: Fenway Partners, LLC is a middle market private equity firm that invests in profitable businesses with significant upside potential. Fenway has built a strong reputation for its hands-on approach to supporting its portfolio companies, with a focus on value-added distribution and consumer product businesses. (www.fenwaypartners.com)

 

Media Contacts:

Megan Hendricksen                                                                                    Stefanie Kraus

Lineage Logistics                                                                                         Preferred Freezer Services

949.247.5172                                                                                                   973.820.4047

mhendricksen@lineagelogistics.com                                                     skraus@preferredfreezer.com

PFS and Orca Bay Seafoods Inc. Announce Development in Washington

Published date: 
Monday, August 15, 2016 - 13:06

Preferred Freezer Services (PFS) announces the development of a new 314,424 square-foot, state-of-the-art warehousing, distribution, and processing center in Federal Way, Washington. PFS will offer its signature 3PL services from this spacious, temperature-controlled storage and distribution center. In addition, the industrial-zoned site will house a 75,000 square-foot dedicated, customized processing facility independently operated by Orca Bay Seafoods Inc. The facility, strategically located between Tacoma and Seattle ports, will be the third constructed by PFS in Washington State.

PFS is an experienced LEED®-certified designer, developer, and operator of facilities which are maintained to ensure environmental responsibility in the U.S. and globally. All technologically advanced PFS warehouse facilities are developed and constructed to continually ensure and improve the stewardship of local resources. Orca Bay Seafoods shares these values as well and over the years have implemented numerous conservation initiatives including: participation in Fishery Improvement Projects and reengineering production processes to reduce packaging waste, energy consumption, and water usage.

Development of the 19 acre site will include the relocation and enhancement of the seasonal wetlands discovered on site. The Army Corps of Engineers is in the process of approving this plan of action. The completed campus will boast PFS’s hallmark well-groomed and maintained lawns and yards. In addition, a 50-foot-wide forested buffer will maintain the existing leafy character of the industrial-zoned property while also screening it from adjacent Weyerhaeuser Way. All construction practices and materials will utilize the most cutting-edge, environmentally responsible technologies available within the construction industry.

“Preferred Freezer Services is excited to partner with Orca Bay Seafoods Inc. on this new project and set the standard for the entire business park. Our companies share similar cultures and strive to exceed expectations with any and all interactions between our employees, vendors, valued customers, and the communities in which we operate our businesses. We are confident that this new facility will allow Orca Bay and all customers PFS serves today the opportunity to grow their business within this region,” said Dan DiDonato, Executive Vice President of Preferred Freezer Services. President and Chief Executive Officer of Orca Bay Seafoods Inc. Ryan Mackey added that “Orca Bay has done business in the Seattle-Tacoma area for over 30 years. The move to Federal Way and partnership with Preferred Freezer Services provides us an ideal opportunity to improve our operational efficiency and flexibility by consolidating our Bellevue and Renton locations. The new space also affords us the ability to continue our commitment to exceeding our customer’s expectations by offering quality frozen seafood produced with the highest levels of food safety and environmental sustainability. This is going to be great not only for our business but for the more than 250 employees, our customers, and for Federal Way.”

For information on any of the thirty seven PFS locations, please visit www.PreferredFreezer.com or contact EVP of Sales Dan DiDonato at 973-820-4040. For information on Orca Bay Seafoods, please visit www.OrcaBaySeafoods.com or contact Marketing and Communications Manager Lilani Estacio at 425-687-4111.

About Preferred Freezer Services: Preferred Freezer Services, headquartered in Chatham, New Jersey, is dedicated to designing, constructing, and operating state-of-the-art warehouses throughout the United States and Asia. Preferred Freezer Services has grown from a single facility in 1989 to 37 U.S. locations and still growing. Preferred Freezer Services operates in locations throughout the United States with facilities in New York/New Jersey, California, Florida, Georgia, Illinois, Massachusetts, Pennsylvania, Texas, Virginia, and Washington State.

About Orca Bay Seafoods: Orca Bay Seafoods is a leading North American seafood processor and distributor since 1985. Based in Renton, WA, Orca Bay distributes retail and foodservice seafood products throughout North America under their own Orca Bay and Passport brands as well as private labels. Orca Bay maintains a prominent position in frozen seafood processing with a high efficiency plant combining the very latest technology with comprehensive food safety oversight in compliance with GFSI, USFDA, and HACCP guidelines.

Preferred Freezer Services Announces Newest Houston Distribution Center Pasadena, Texas Facility Brings Number of Houston Area PFS Facilities to Four

Published date: 
Wednesday, July 20, 2016 - 13:42

Preferred Freezer Services (PFS) announces its newest facility in Pasadena, Texas. PFS is a continually expanding global leader in the cold storage, warehousing, distribution, and logistics industry. The newest warehouse, to be named Houston Gulf Coast, is the company’s fourth in the Houston area and its thirty-seventh in the U.S. The facility is strategically located to satisfy demand near the Port of Houston’s Bayport terminal.

The completed freezer will add 9.6 million cubic feet to the company’s impressive worldwide footprint. At 25,760 pallet positions, it will bring the combined capacity of PFS’s Houston area footprint to over 85,000 pallet positions.

Houston Gulf Coast will have multi-temperature capability as well as blast freezing capabilities. 18 dock doors, a 90 foot deep dock, and an oversized truck and container drop lot will allow for easy truck loading and unloading. The facility will offer full USDA import and export capability and include a multi-purpose room for additional value-added services. Consistency and product integrity will be maintained by a full on-site generator backup. Houston Gulf Coast is set to open in March 2017.

“With the addition of the Houston Gulf Coast location, the Preferred Freezer Services team will have the flexibility to help our customers store their goods at any of four Houston alternatives,” said Brian Beattie, President of Preferred Freezer Services. He added that PFS “will now have the additional capacity to meet our existing and new customer needs throughout the year while maintaining the service levels expected when doing business with us.”

Read more in Preferred Freezer Services' press release.

Preferred Freezer Services Breaks Ground on Third Chicago Facility

Published date: 
Wednesday, March 23, 2016 - 15:18

Preferred Freezer Services (PFS), a global leader in advanced design and engineered temperature-controlled warehouses, celebrates ground-breaking in Chicago, Illinois. The new facility will be the company’s third in the Chicago area and its thirty-sixth in the United States. The Chicago III facility will satisfy demand for modern and efficient cold storage warehousing services in the competitive metropolitan Chicago market. 

The new facility, scheduled to open in the spring of 2017, will be located at the intersection of S. Blue Island Avenue Drive and S. Wood Street near the intersection of S. Damen Avenue and Interstate 55. The completed facility will cover 227,043 square feet, stand 58 feet tall, and have a storage capacity of more than 32,000 pallets. The warehouse will consist of three rooms that will have multi-temperature capabilities as well as meat services such as blast freezing and USDA inspection services.

“Preferred Freezer Services continues to invest in new state-of-the-art cold storage warehouse and distribution facilities to support the growing needs of new and current customers,” says Dan DiDonato, EVP of Sales at Preferred Freezer Services. DiDonato continues, “The demand for temperature-controlled buildings in Chicago and across the US that comply with and exceed the latest food safety regulatory requirements from a local, state, and federal perspective is a growing concern for food manufacturers, distributors, importers, exporters, etc. We understand this concern and are proud to be part of the supply chain that brings their food to market.”

For more information on the newest Chicago facility, contact Regional Sales Director Aaron Hinderer at 510-798-3930 / ahinderer@preferredfreezer.com. For more information regarding specific PFS locations, please visit www.PreferredFreezer.com. For general information regarding all PFS facilities in the U.S., please contact Dan DiDonato at 973- 820-4040.

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Preferred Freezer Services, headquartered in Chatham, New Jersey, is dedicated to designing, constructing, and operating state-of-the-art warehouses throughout the United States and Asia. Preferred Freezer Services has grown from a single facility in 1989 to 35 U.S. locations and still growing. Preferred Freezer Services operates in locations throughout the United States with facilities in New York/New Jersey, California, Florida, Georgia, Illinois, Massachusetts, Pennsylvania, Texas, Virginia, and Washington State.

Preferred Freezer Services Opens Eighth Facility in Home State of New Jersey

Published date: 
Tuesday, April 14, 2015 - 16:35

Preferred Freezer Services (PFS) announced its newest facility in Woodbridge Township, New Jersey. PFS is a continually expanding global leader in the cold storage, warehousing, and logistics industry. PFS began with a single warehouse in New Jersey 25 years ago. The newest Woodbridge Township facility, the company’s eighth cold storage facility in New Jersey and its thirty-fifth worldwide, represents PFS’s sustained momentum and enduring commitment to being the best in temperature-controlled warehousing.

The freezer will occupy 142,889 square feet with a 29,715 square foot loading dock. The facility will add 8.4 million cubic feet of storage capacity and 26,000 pallet positions.

“We are proud to continue to invest and expand in our home state, in and around the New York/New Jersey port. Our building, refrigeration, and lighting are industry leading, maximizing efficiency,” said John Galiher, Chief Executive Officer of Preferred Freezer Services.

The Woodbridge facility will start accepting product on Monday April 20th, 2015. An open house celebration will follow.

For more information on our newest Woodbridge facility, contact Sales Manager Michael Bowman at (973) 876-5599/ mbowman@preferredfreezer.com. For information on all thirty four PFS locations, please visit www.PreferredFreezer.com or contact Dan DiDonato at 973-820-4040.

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About Preferred Freezer Services: Preferred Freezer Services, headquartered in Chatham, New Jersey, is dedicated to designing, constructing, and operating state-of-the-art warehouses throughout the United States and Asia. Preferred Freezer Services has grown from a single facility in 1989 to 34 locations and still growing. Preferred Freezer Services

 

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