Lineage to acquire cold storage warehouses from Tyson Foods

Lineage (LINE) announced plans to expand its U.S. cold-storage network via a series of new acquisitions, greenfield developments, and enhanced automation implementation. Namely, Lineage has entered into a definitive agreement to acquire multiple, existing cold storage warehouses in the U.S. from Tyson Foods (TSN). 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, which Tyson Foods will occupy as an anchor customer. Under the same agreement, Tyson Foods will begin storing product at Lineage’s newly developed next-generation, fully automated cold storage warehouse in Hazelton, PA, which utilizes LinOS, Lineage’s proprietary warehouse execution technology. Lineage expects to deploy approximately $1B of capital over the coming years on the acquisitions and the new greenfield developments.