Cold storage and logistics company Lineage has acquired Kansas City, Kansas-based ColdPoint logistics – a provider of cold storage, warehousing, and transport solutions – for USD 223 million (EUR 212 million).
Lineage announced the acquisition in its Q3 2024 results – the first such presentation since the company filed registration to go public in July 2024. The company said the transaction closed on 1 November and represents its largest deal since it went public.
“The acquisition of ColdPoint expands Lineage's existing presence in the strategic Kansas City area and enhances our ability to provide an efficient solution for customers along the protein corridor with direct access to major U.S. ports via onsite rail,” Lineage CEO Greg Lehmkuhl said.
ColdPoint has a 621,000-square-foot facility containing 62,000 pallet positions, along with blast cells and a standalone room for boxing.
“The ColdPoint team is excited about joining with Lineage. The combination of our companies creates an incredible opportunity for our team to grow within a larger organization and provides our customers with access to Lineage’s vast network,” ColdPoint CEO Aaron Burks said.
Alongside the purchase, Lineage revealed its Q3 2024 results and the results of its IPO. Lineage said it raised USD 5.1 billion (EUR 4.8 billion) through its July IPO – making it the largest real estate IPO of all time, it said.
According to its unaudited results, the company’s net revenue in the quarter was USD 1.335 billion (EUR 1.272 billion), an increase over the USD 1.329 billion (EUR 1.266 billion) it posted in the same period of 2023. As its revenue increased, its cost of operations decreased slightly to USD 897 million (EUR 854 million), down from USD 899 million (EUR 856 million).
The company’s adjusted EBIDTA reached USD 333 million (EUR 317 million), an increase of 5.3 percent over the prior year, and it posted a net loss of USD 543 million (EUR 517 million) in the quarter – largely due to expenses tied to its IPO.
The company’s adjusted funds from operations (AFFO) reached USD 232 million (EUR 227 million) – an increase of 51.8 percent.
"We are excited to report strong results for our first quarter as a public company, demonstrating our ability to perform well in various economic environments," Lehmkuhl said. "We generated significant AFFO per share growth this quarter aided by our successful IPO and continued strong operating performance. Looking forward, we are well-positioned to drive compounding growth, benefiting from our industry-leading real estate portfolio, innovative technology, and our strategic capital deployment engine.”
