Lineage Logistics puts cold storage on rails with acquisitio

Lineage Logistics puts cold storage on rails with acquisition


Lineage Logistics puts cold storage on rails with acquisition
Gillian Tan
Acquisition will allow Lineage to lower customer transportation costs
Deal marks more than 40 acquisitions for the firm in roughly a year
Lineage Logistics
Novi-based cold-storage warehousing company Lineage Logistics LLC is branching into rail.
Lineage announced this week it acquired Cryo-Trans, an owner of refrigerated and insulated railcars, to capture an additional leg of the food and beverage supply chain. The transaction values Reisterstown, Maryland-based Cryo-Trans at more than $500 million.
"A move into rail is part of our effort to be a one-stop-shop for our customers and eliminate waste within the food supply chain," Lineage CEO Greg Lehmkuhl said in an interview. By replacing some trucking capacity with rail, customers may reduce transport costs by 15 percent to 40 percent, depending on the shipment size and distance traveled, he estimated.

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