NOVI, MICH. — Lineage Inc. (NASDAQ: LINE), a Novi-based cold storage REIT, has entered into a definitive agreement to acquire four cold storage warehouses from Tyson Foods Inc. for $247 million. At or prior to closing the acquisition agreement, Lineage will enter into an additional, multi-year agreement under which it will design, build and operate two next-generation, fully automated cold storage warehouses in major U.S. distribution markets that Tyson will occupy as an anchor tenant.
Under the same agreement, Tyson will begin storing product at Lineage’s newly developed property in Hazelton, Pa., which utilizes LinOS, Lineage’s proprietary warehouse execution technology.
Lineage says it expects to deploy approximately $1 billion of capital over the coming years on the acquisitions and the new greenfield developments.
The existing Tyson warehouses that sold in the transaction total roughly 49 million cubic feet and are located in Pottsville, Pa., Olathe, Kan., Rochelle, Ill. and Tolleson, Ariz. Following the acquisition, Lineage plans to onboard over 1,000 Tyson employees. Over time, the acquired warehouses will be transitioned to public warehouses as part of Lineage’s global footprint. The transaction is subject to customary closing conditions and is expected to close in the second quarter.
Lineage expects to deploy over $740 million to develop the two fully automated cold storage warehouses. The greenfield developments will add more than 80 million cubic feet.
Lineage’s portfolio includes more than 480 facilities totaling over 84.1 million square feet and 3 billion cubic feet across north America, Europe and Asia-Pacific. The company’s stock price opened at $48.50 per share Thursday, May 1, down from $80.78 per share one year ago.