Lineage plans to expand its U.S. cold storage network via a series of new acquisitions, greenfield developments, and enhanced automation implementation.
Namely, Lineage recently agreed to acquire multiple existing cold storage warehouses in the U.S. from Tyson Foods in a deal that builds on a longstanding customer relationship with Lineage. Lineage’s strength as a leading global network and automation expert, together with proprietary data science capabilities, aligns with Tyson’s objective to enable a faster, smarter, and more integrated supply chain to meet the demands of an increasingly dynamic, evolving, and growing market, the companies reported.
At or prior to closing the acquisition, 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 will occupy as an anchor customer. Under the same agreement, Tyson will begin storing product at Lineage’s newly developed next-generation, fully automated cold storage warehouse in Hazelton, Pennsylvania, which utilizes LinOS, Lineage’s proprietary warehouse execution technology.
Lineage expects to deploy approximately $1 billion of capital over the coming years on the acquisitions and the new greenfield developments.
“This transaction is the result of a longstanding relationship rooted in shared values,” Greg Lehmkuhl, Lineage president and CEO, said in a news release. “We’re proud to partner with our valued customer on these landmark agreements, leveraging our global footprint, data-driven approach, LinOS, and automation technology.
“This is just another example of the unique value we can add to our customers.”
Cold storage acquisitions
Lineage will acquire and take over operations of four existing cold storage warehouses and other related assets from Tyson Foods for $247 million. These warehouses total approximately 49 million cu. ft. with 160,000 pallet positions, and are located in Pottsville, Pennsylvania; Olathe, Kansas; Rochelle, Illinois; and Tolleson, Arizona. Following the acquisition, Lineage plans to onboard over 1,000 of Tyson’s employees. Over time, as the newly constructed warehouses commence operations, the acquired warehouses will transition 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 of 2025.
Greenfield developments
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 cu. ft. and nearly 260,000 pallet positions, expanding Lineage’s scalable logistics capacity across its network.
“This expansion signals what we see as the next evolution of cold chain operations and reflects the growing demand for smarter, more responsive supply chain networks,” Lehmkuhl said. “We’re creating more than cold storage infrastructure—we’re setting the foundation for agile, intelligent supply chains built for resilience and precision.”
