Lineage Logistics Broadens North American Network with Acquisition of VersaCold Logistics Services from TorQuest Partners
Acquisition bolsters Lineage’s existing presence in Canada and enables the Company to provide more efficient cross-border solutions for customers in North America and beyond
NOVI, Mich-Lineage Logistics, LLC (“Lineage” or the “Company”), one of the world’s leading and most innovative temperature-controlled industrial REITs and logistics solutions providers, today announced it has signed a definitive agreement to acquire VersaCold Logistics Services (“VersaCold”), a leading cold chain solution provider in Canada, from TorQuest Partners (“TorQuest”) and its co-investment partners, The Investment Management Corporation of Ontario (“IMCO”) and OPTrust. Financial terms of the transaction were not disclosed.
Founded in 1941 and headquartered in Vaughan, Ontario, VersaCold is a cold chain leader that runs 24 temperature-controlled facilities comprising 114 million cubic feet of storage and 361,000 pallet positions. Its strategically-positioned network spans nine provinces and includes properties in Canada’s most populous metropolitan markets—including Toronto, Calgary, Vancouver, Edmonton, and Montreal. VersaCold also offers an integrated, asset-based inbound and outbound temperature-controlled transportation solution that operates out of nine terminals across the country and provides coast-to-coast service capabilities.
Greg Lehmkuhl, President and CEO of Lineage Logistics had a bit of praise for VersaCold emphasizing that they built a stellar reputation by providing customers with differentiated and fully integrated warehousing and transportation solutions across Canada adding that they are excited to bring them into the One Lineage family and work alongside the VersaCold leadership team to better serve customers across North America.
Mike Arcamone, President and CEO of VersaCold Logistics Services hailed Lineage Logistics stating that they have emerged as a world leader in creating innovative solutions to help reduce waste across the temperature-controlled supply chain. He made it known that Combining their seasoned team and complementary facility network with Lineage will create an even more dynamic company capable of supporting the growing needs of customers in Canada and around the globe.
Jonathan Fraser, Partner at TorQuest also in his words made it known that VersaCold has thrived under their ownership, and that they are very pleased to have Lineage step in to drive the next chapter for the business. Stating that the company is also excited to be investing in Lineage as part of this transaction and for their investors to participate in future value creation.
The acquisition is expected to close in the third quarter of 2022 subject to customary closing conditions.
Wells Fargo Securities, LLC acted as the exclusive financial advisor to VersaCold and TorQuest and Stikeman Elliott LLP served as legal counsel. JP Morgan Chase and Scotiabank acted as Lineage’s financial advisors and Latham & Watkins as well as Bennett Jones acted as its legal counsel.
About Lineage Logistics
Lineage Logistics is one of the world’s leading temperature-controlled industrial REITs and logistics solutions providers. It has a global network of over 400 strategically located facilities totaling over 2 billion cubic feet of capacity which spans 19 countries across North America, Europe and Asia-Pacific. Lineage’s industry-leading expertise in end-to-end logistical solutions, its real estate network, and development and deployment of innovative technology help increase distribution efficiency, advance sustainability, minimize supply chain waste, and most importantly, as a Visionary Partner of Feeding America, help feed the world. In recognition of the company’s leading innovations and sustainability initiatives, Lineage was listed as No. 17 in the 2021 CNBC Disruptor 50 list, the No 1. Data Science company, and 23rd overall, on Fast Company’s 2019 list of The World’s Most Innovative Companies, in addition to being included on Fortune’s Change The World list in 2020. (www.lineagelogistics.com)
About VersaCold Logistics Services
VersaCold is one of Canada’s leading supply chain solutions companies focused exclusively on the handling of temperature sensitive food products. VersaCold delivers a suite of fully integrated logistics services through its national network of industry leading facilities, transportation fleet and advanced technologies that set the benchmark for accessibility, information visualization, real-time tracking and inventory management. VersaCold is proud to play a key role in ensuring the safety, quality and freshness of some of North America’s most beloved food brands, protecting the health and wellness of families across Canada from coast to coast. For more information about VersaCold, please visit www.versacold.com.
About TorQuest Partners
Founded in 2002, TorQuest Partners is a Canadian-based manager of private equity funds. With more than C$3.5 billion of equity capital under management, TorQuest is currently investing from TorQuest Partners Fund V, a C$1.4 billion fund that closed in March 2020. TorQuest invests in middle market companies and works in close partnership with management to build value. To learn more about TorQuest, please visit www.torquest.com.
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