Cold-storage warehouse firm Lineage Logistics has acquired the refrigerated railcar company Cryo-Trans in a deal that gives the combined entity solid inroads into the food and beverage supply chain, Bloomberg reported on Tuesday (Jan. 5). The deal pegs the Maryland-based Cryo-Trans with a value exceeding $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 told Bloomberg.
He added that swapping truck capacity for rail in some instances will give customers a 15-40 percent reduction in transport costs. The collaboration gives the combined entity solid inroads into the food and beverage supply chain.
Lineage, a real estate investment trust, is looking to team up with current clients to advance efficiency. For example, the company said that if frozen food is being transported cross-country, the return trip could also move frozen goods. About 90 percent of Cryo-Trans customers are already part of Lineage’s network.
Over 330 temperature-controlled warehouses with nearly two billion cubic feet of storage capacity in 15 countries are part of Lineage. The company also offers last-mile delivery, freight consolidation, port logistics and other services.
Cryo-Trans has over 2,200 railcars, possibly the largest private fleet in North America, the company said. Using real-time technology, the company expedites the tracking of over 40,000 rail shipments each year.
Lineage raised $1.6 billion in a funding round led by Oxford Properties Group, BentallGreenOak and Dan Sundheim’s D1 Capital Partners. Following the funding, Lineage was valued at $15.5 billion, including debt.
In a PYMNTS interview with Chicago’s JKC Trucking, Co-owner and Vice President Mike Kucharski said it was a logistical feat to distribute millions of refrigerated COVID-19 vaccinations. He noted that getting the job done required the full assistance of the country’s small, medium, large and independent truckers.